February Expiration
Today is the expiration of our four February Covered Calls. Here is where we stand with each …
Let’s begin with our Rubrik (RBRK) covered call. Initially, we bought the stock for 65 and sold the February 70 call for $3.
Today the stock is trading at 72. My plan is to simply let this position play itself out. If RBRK closes above 70 today (likely, but not a guarantee) we will walk away with our profit of $800 per covered call, or a yield of 12.9%.
Moving on to Robinhood (HOOD). Last month we bought stock at 42.75 and sold the February 42 call for $4.75.
Today the stock is trading at 56.5. My plan is to simply let this position play itself out. If HOOD closes above 42 today (very likely) we will walk away with our profit of $400 per covered call, or a yield of 10.52%.
Next up is Cloudflare (NET). Last month we bought the stock at 121.15 and sold the February 120 call for $8.50.
Today the stock is trading at 155. My plan is to simply let this position play itself out. If NET closes above 120 today (very likely) we will walk away with our profit of $735 per covered call, or a yield of 6.52%.
The last stock we will look at is Guardant Health (GH). Last month we bought the stock at 47.4 and sold the February 50 call for $2.40.
Today the stock is trading at 46. My plan is to simply let this position play itself out. If GH closes below 50 today (very likely), the February 50 call will expire worthless and next week we will likely sell out of our stock position.
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