January Expiration
Today is the expiration of our three January covered calls. Here is where we stand with each:
Let’s begin with our American Airlines (AAL) covered call. Initially, we bought the stock for 18 and sold the January 18 call for $0.90.
Today the stock is trading at 18.4. My plan is to simply let this position play itself out. If AAL closes above 18 today (likely, but not a guarantee), our position will close for its full profit and we will be left without a stock or option position next week.
Moving on to SoFi (SOFI). Last month we bought stock at 16.40 and sold the January 17 call for $1.15.
Today the stock is trading at 16.5. My plan is to simply let this position play itself out. If SOFI closes below 17 today (likely, but not a guarantee), we will let the call that we sold expire worthless, and then early next week we will decide if we are going to sell our stock or sell a new call.
Next up is Birkenstock (BIRK). Last month we bought the stock at 60.2 and sold the January 60 call for $2.
Today the stock is trading at 59.15. My plan is to simply let this position play itself out. If BIRK closes below 60 today (likely, but not a guarantee), we will let the call that we sold expire worthless, and then early next week we will decide if we are going to sell our stock or sell a new call.
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