We’re continuing with the plan we shared last Friday. The September calls have been closed, and we’re still holding the January calls. Now, I want to lower our cost basis even more by selling additional upside premium.
I’m selling 2 Nov 110 calls at $4.40 each, which will reduce our cost basis by another $880. This leaves $1,080 still at risk in the trade.
After November, if the stock remains below $110, we’ll have the opportunity to let our January calls keep running. We’ll also likely sell more upside calls in January, turning our diagonal spread into a vertical spread, further lowering the cost basis.
This is how we can continue to make bullish bets in the stock while having limited capital at risk.