March Expiration
Today is the expiration of our four March covered calls. Here is where we stand with each, with the headline being we will not act on any of these trades today …
Let’s begin with our Western Digital (WDC) covered call. Initially, we bought the stock for 59.1 and sold the March 60 call for $2.50.
Today the stock is trading at 59.75. My plan is to simply let this position play itself out. If WDC closes below 60 (and it’s going to be close), the call we sold for $2.50 will expire worthless and then come Monday we will be left with our stock position.
On the other hand if WDC closes above 60 this afternoon, we will walk away with our profit of $340 per covered call, or a yield of 6%.
Moving on to Willscott Mobile (WSC). Last month we bought stock at 50 and sold the March 50 call for $2.30
Today the stock is trading at 45.5. My plan is to simply let this position play itself out. If WSC closes below 50 today (likely), the call we sold will expire worthless and we will likely exit our stock position early next week.
Next up is Azek (AZEK). Last month we bought the stock at 44.30 and sold the March 45 call for $1.45.
Today the stock is trading at 48. My plan is to simply let this position play itself out. If AZEK closes above 45 today (likely), we will walk away with a nice $215 profit, or a yield of 5.01%.
AppLovin (APP) is the last stock we will discuss. We bought the stock at 56.6 and sold the March 57.5 call for $2.53.
Today the stock is trading at 63.5. My plan is to simply let this position play itself out. If APP closes above 57.5 today (likely), we will walk away with a nice $353 profit, or a yield of 6.54%.
