This little fella was one of the plays on my lengthy post-Brexit list ... . Here, due to the cheapness of the underlying and my not wanting to be married to the trade longer than necessary (it might have further downside), I'm going covered call and tight in with the short call (also, if you go further up with the short call, you can't get squat in premium to reduce your cost basis in your shares). Here are the metrics:
100 Shares BCS at 7.34
1 Aug 19th 8 Short Call
Whole Package: $686 debit (6.86/share will be your cost basis)
Max Profit: $114 (if called away at $8/share)
100 Shares BCS at 7.34
1 Aug 19th 8 Short Call
Whole Package: $686 debit (6.86/share will be your cost basis)
Max Profit: $114 (if called away at $8/share)