Today I opened a position in CPRI. I bought 200 shares, sold two puts at the $35 strike for $1.12 each, and sold one call at the $37 strike. Each of those contracts expires on 9/13. I only sold one call in case CPRI runs up through my strike I won’t lose all of my shares. Using the premium on the puts and the call I already reduced my cost basis nearly $1 a share. If I get assigned on the puts I’ll sell a call on one of the, to reduce my cost basis some more. Here’s more detail.
Posted by mtrosejibber