The coronavirus-related sell-off continues today. As I said yesterday, I believe the market is overreacting, but we must play the hand we are dealt.
Selling calls on stocks to generate cash and managing those calls aggressively is a great way to navigate markets like this one when you have a longer-term view of a company and a stock. And that’s exactly what we will be doing with our Nike (NKE) position today.
Current Stock Price: $97.28
Cost Basis: $100.93
- Buy to close the NKE Jan Week Five (1/31) 101 Call for around $0.01
- Sell to open the NKE Feb Week One (2/7) 100 Call for around $0.32
- Set your initial credit limit at $0.31, but adjust if needed to roll today
New Cost Basis: $100.62