I have had a Long stock position in $NUS in the IRA for several weeks, along with a Collar for August, and have been reviewing my choices for adjusting for earnings tomorrow.
Here are a few messages from my stream leading up to today:
- I am long stock at $66.25
- I am Short the August 80 Call, Long the August 75/60 Put Spread (the Collar pieces)
- The Collar was done for a $.25 credit on 7/10/2013
With price currently hovering near the $84 level, here are a few things to note:
1) The Short 80 Call is ITM so the gain is currently capped
2) The Put Spread would cover me down to the 60 strike if there was a wild flush down after the earnings report
Here are a few choices I am considering for an adjustment:
1) BtC the August 80 Call, StO the September 85 Call for a $.80 debit (5.00/4.20)
2) Do nothing. If it pops after earnings and holds until Friday then decide on appropriate adjustments to the Short Calls.
3) Do nothing. If it drops after earnings, consider what to do then depending on how close it gets to the 75 Put strike.
4) BtC the August 80 Call, Sell the August 85 Call for a $2.35 debit (5.00/2.65)
BtC = Buy to Close
StO = Sell to Open