I am recommending we roll our 1Life Healthcare (ONEM) call out to September. The question is whether to target a small loss or to try to make a profit on the position. I am inclined to go the latter route and sell an out-of-the-money call that will generate a profit if our shares are called away.
I will follow up on this position as we near the September expiration.
Our S&P 500 (SPX) hedges are on track to expire worthless at the end of the week, and we will simply watch them do so.
Remember that these hedges were designed to be purely defensive positions. Hedging in this way is an effective year-round strategy. If you want to continue using this tactic, you may want to review the Hedging Coaching Session.
ONEM Aug Monthly (8/21) 40 Call
Current Stock Price: $29.22
Cost Basis: $33.66
- Buy to close the ONEM Aug Monthly (8/21) 40 Call for around $0.03
- Sell to open the ONEM Sep Monthly (9/18) 35 Call for around $0.85
- Set your initial credit limit at $0.82, but adjust as needed to roll today
New Cost Basis: $32.84
SPX Aug Monthly (8/21) 2925 Put
Current Index Price: 3,395.70
Net Debit: $11.75
Action: Watch put expire
SPX Aug Monthly (8/21) 2925/2875 Put Spread
Net Debit: $2.80
Action: Watch put spread expire