We added 14 shares of PBCT stock to our holdings in the account #1 and we have reached 100 shares in this account.
We will now start selling a covered strangle against this position (covered calls and cash-secured puts) to lower our cost basis.
Our current cost basis is $10.86 and we hope to be selling enough options to end up owning this stock for free (in other words, monetizing this position will generate enough income to return all our invested capital back to us, something Warren Buffett does, too).
We will utilize a “wheel of fortune” strategy. If we get assigned to our calls and forced to sell our 100 shares, we will start selling cash-secured puts (2 contracts), if our cash secured puts get assigned and we will be forced to buy additional 100 shares, we will buy and start selling 2 covered calls contracts.
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