July Expiration
Today is the expiration of our July Covered Calls. Here is where we stand with each …
Let’s begin with our Pinterest (PINS) covered call. Initially, we bought the stock for 41.5 and sold the July 41 call for $2.75.
Today the stock is trading at 41. My plan is to simply let this position play itself out. If PINS closes above 41 today (it will be close) we will walk away with a profit of $225 per covered call, or a yield of 5.8%.
If PINS closes below 41 today (again it will be close) the call we sold will expire worthless and then next week I will decide if we should exit the trade or sell a new call.
Moving on to Dutch Bros. (BROS). Last month we bought stock at 36.35 and sold the July 37.5 call for $1.65.
Today the stock is trading at 39. My plan is to simply let this position play itself out. If BROS closes above 37.5 today (likely) we will walk away with our profit of $280 per covered call, or a yield of 8.06%.
Next up is Sweetgreen (SG). Last month we bought the stock at 30.45 and sold the July 32 call for $2.10.
Today the stock is trading at 24.25. My plan is to simply let this position play itself out. If SG closes below 32 today (very likely), the July 32 call will expire worthless and next week we will likely sell out of our stock position.
Moving on to Howmet Aerospace (HWM). Last month we bought stock at 83.15 and sold the July 85 call for $1.90.
Today the stock is trading at 78. My plan is to simply let this position play itself out. If HWM closes below 85 today (very likely) 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 Guardant Health (GH). Last month we bought the stock at 30.75 and sold the July 30 call for $2.40.
Today the stock is trading at 30.7. My plan is to simply let this position play itself out. If SG closes above 30 today (likely), we will walk away with our profit of $165 per covered call, or a yield of 5.82%.
Finally, let’s look at HIms & Hers (HIMS). Last month we bought stock at 23 and sold the July 23 call for $1.85.
Today the stock is trading at 20.25. My plan is to simply let this position play itself out. If HIMS closes below 23 today (likely) the July 23 call will expire worthless and next week we will decide if we are going to sell our stock, or sell a new call.
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