January Expiration
Today is the expiration of our three January covered calls, and the good news is all three should expire for full profits today, and you will not need to address these positions.
Let’s begin with our Azek (AZEK) covered call. Initially, we bought the stock for 34.65 and sold the January 35 call for $1.40.
Today, the stock is trading at 37. My plan is to simply let this position play itself out. If AZEK closes above 35 today (likely), we will walk away with a nice $175 profit, or a yield of 5.26%.
Moving on to GitLab (GTLB). Last month, we bought the stock at 61 and sold the January 60 call for $4.
Today, the stock is trading at 65. My plan is to simply let this position play itself out. If GTLB closes above 60 today (very likely), we will walk away with a nice $300 profit, or a yield of 5.35%.
Advanced Micro Devices (AMD) is the last stock we will discuss. We bought the stock at 140 and sold the January 142 call for $5.15.
Today, the stock is trading at 164. My plan is to simply let this position play itself out. If AMD closes above 142 today (very likely), we will walk away with a nice $715 profit, or a yield of 5.3%.
Nice month of trades!
