Hello Investors,
The financial sector is breaking out and continues to lead the markets higher. We have a trade breaking out in BAC and we want to adjust our current positions. We currently own 203 shares of stock. In addition, we currently have a 1×2 call spread and another short-term covered call that expires this week. The goal at this point is two part. A) make sure we retain our stock going forward. B) to possibly acquire more shares of the stock due to the change in trend. So, we are making the following adjustment:
Bought 100 shares of BAC at $25.47
Buy to close: BAC June 19th (monthly) 24.00 strike calls (ratio of 2)
Sell to close: BAC June 19th (monthly) 23.00 strike calls (ratio of 1)
Sell to open: BAC June 19th (monthly) 24.00 strike puts (ratio of 1)
Limit debit: 0.70
This adjustment assures us of owning our shares of stock going forward. We may also be able to increase that position size overall to 300 shares (on a pullback to 24/share or lower).
Have a great week!