Hello Investors,
We bought 55 more shares of EFA to hedge our current covered call. This bumps our share count up to 165 shares total. This will help us assuming that EFA finishes on Friday above 69.00 per share. If that happens, then they will “call away” our stock but we will end up with 65 shares. We can then buy more shares and end up back in our original position.
Bought 55 shares of EFA at 69.57.
If you don’t have the capital to buy additional shares, the best approach would probably be to carefully “buy to close”‘ the Nov 69.00 strike calls to remove the covered call today. You will likely end up in a similar spot to our adjustment overall!
Reminder we will be back for a live class tomorrow at 10:00 a.m. ET!