December Expiration
Today is the expiration of our five December covered call trades. Before diving too deep into each position, the high-level takeaway should be that we do not need to make any moves today.
Let’s begin with our Range Resources (RRC) covered call. Initially, we bought the stock for 34.70 and then sold November, and then December calls
Today the stock is trading at 30.5. My plan is to simply let this position play itself out. If RRC closes below 34 today (likely), the December 34 call that we sold for $0.75 will expire worthless, and come Monday/Tuesday of next week we will decide if we should sell the stock out or continue to sell calls.
Moving on to Ollie’s Bargain Outlet (OLLI). Last month we bought stock at 77 and sold the December 75 call for $6.40.
Today the stock is trading at 69.5. My plan is to simply let this position play itself out. If OLLI closes below 75 today (likely), the December 75 call that we sold for $6.40 will expire worthless, and come Monday/Tuesday of next week we will decide if we should sell the stock out or continue to sell calls.
Next up is DraftKings (DKNG). Last month we bought the stock at 35.35 and sold the December 35 call for $2.35.
Today the stock is trading at 36.5. My plan is to simply let this position play itself out. If DKNG closes above 35 today, we will walk away with a nice $200 profit, or a yield of 6.06%.
Uber (UBER) is the next stock we will discuss. We bought the stock at 53.44 and sold the December 52.5 call for $2.74.
Today the stock is trading at 63. My plan is to simply let this position play itself out. If UBER closes above 52.5 today (likely), we will walk away with a nice $180 profit, or a yield of 3.55%.
Finally, let’s look at Gap (GPS). Last month we bought the stock at 18.10 and sold the December 18.5 call for $0.55.
Today the stock is trading at 21.5. My plan is to simply let this position play itself out. If GPS closes above 18.5 today (likely), we will walk away with a nice $95 profit, or a yield of 5.41%.
