Hello Investors,
A few changes to the portfolio.
We are rolling up our short calls in Disney (DIS). This will cost us some money but should put us in a better spot into expiration on December 18th.
Buy to close: DIS Dec 18th (monthly) 150.00 strike call
Sell to open: DIS Dec 18th (monthly) 155.00 strike call
Limit debit: 2.30
We also sold a put to hedge some of our risk in General Motors (GM) covered call being called away. It is quite possible that the stock finishes above this strike price and it expires for a full profit. However, if the stock does pull back, it will likely still finish above $40.00/share overall. So, we will be “called away” from the stock but “put” back in with this put option. The details are as follows:
Sold to open: GM Dec 18th (monthly) 42.50 strike put
Limit credit: 0.59
We will discuss these adjustments and more tomorrow in class!