We own 202 shares of CVS and and sold 2 covered calls at the 80 strike in February. We are adjusting the position and it does leave us sort of “naked” on some of the shares. After the adjustments below, we are short 3 calls against 202 shares of stock. However, we also own the March call spread. So, we are 98 shares naked but really only if the stock moves above 90/share by Feb 15th expiration. Something that is both statistically unlikely but also unlikely in our view. And if that is happening, we will pull levers to adjust further. All orders below have been filled.Buy to close: CVS Feb 16th (monthly) 80.00 strike call (ratio of 1)
Debit: 2.04Sell to open: CVS Feb 16th (monthly) 85.00 strike call (ratio of 2)
Credit: 0.71Bought a call spread in March.
Buy to open: CVS Mar 15th (monthly) 82.50 strike call (ratio of 1)
Sell to open: CVS Mar 15th (monthly) 90.00 strike call (ratio of 1)
Debit: 1.37