December Expiration
Today is the expiration of our three December Covered Calls. Here is where we stand with each …
Let’s begin with our Toast (TOST) covered call. Initially, we bought the stock for 38.7 and sold the December 38 call for $2.45.
Today the stock is trading at 36.65. My plan is to simply let this position play itself out. If TOST closes below 38 today (likely), we will let the call expire worthless, and next week we will likely sell our stock position.
Moving on to Norwegian Cruise Line (NCLH). Last month we bought stock at 26.5 and sold the December 26 call for $1.25.
Today the stock is trading at 26.2. My plan is to simply let this position play itself out. This one is going to be close. Essentially if the stock closes below 26, the call will expire worthless and we will be left with our stock position next week. If it closes above 26, the position will expire for its full profit.
Next up is Kyndryl (KD). Last month we bought the stock at 33.75 and sold the December 34 call for $0.95.
Today the stock is trading at 34.50. My plan is to simply let this position play itself out. If KD closes above 34 today (it’s going to be close), we will walk away from the stock and option position with our full profit.
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