Executed the Stock Repair Strategy after a CSP assignment ($RKLB drawdown -25%)

This strategy is not popular, perhaps because some of you don’t know how to deploy it. Here’s an actual use case I just opened in my Schwab account.

I’m currently holding RKLB from $130. With the stock currently hovering around $104.58 results in a PL % of -25% so I decided to deploy a Stock Repair Strategy to lower my break-even point by half for zero cost.

The Position Setup

\* \*\*Long Stock:\*\* +100 shares of RKLB @ $130.00 cost basis (Current Mark: $104.58)
\* \*\*Long Call:\*\* +1 10 JUL 26 104 C (ATM) @ $9.38
\* \*\*Short Call:\*\* -2 10 JUL 26 117 C (OTM) @ $4.82 each ($9.64 total credit)

Cost to Enter

\* \*\*Net Premium:\*\* \*\*$0.26 credit\*\* ($9.64 collected - $9.38 paid). Managed to set this up for a total net credit of \~$26, meaning zero upside risk added to the trade.

The Math / Math Breakdown

If RKLB rallies to \*\*$117.00\*\* by the July 10 expiration:
\* \*\*Shares:\*\* Still down $13.00/share from my original $130 entry.
\* \*\*104 Long Call:\*\* Intrinsic value becomes \*\*$13.00\*\* ($117 - $104).
\* \*\*117 Short Calls:\*\* Both expire completely worthless.
\*\*The Goal:\*\* The $13.00 gain from the long call perfectly covers the remaining $13.00 loss on the shares. This allows me to scratch and exit the entire position at a total break-even at \*\*$117.00\*\* instead of waiting for a full recovery back to $130.00.