May Expiration
Today is the expiration of our May Covered Call trades. Here is where we stand with each, with the high-level view being all six of our trades are in a good spot, though some may need some adjustments next week. Let’s dive in …
Let’s begin with our Permian Resources (PR) covered call. Initially, we bought the stock for 16.7 and sold the May 17 call for $0.75.
Today the stock is trading at 16.4. My plan is to simply let this position play itself out. If PR closes below 17 today (likely), the call that we sold will expire worthless, and then next week we will determine how to manage our remaining stock position.
Moving on to Toast (TOST). Last month we bought stock at 24.05 and sold the May 25 call for $1.75.
Today the stock is trading at 27. My plan is to simply let this position play itself out. If TOST closes above 25 today (likely), we will walk away with a nice $270 profit, or a yield of 12.1%.
Next up is CNX Resources (CNX). Last month we bought the stock at 23.9 and sold the May 24 call for $1.08.
Today the stock is trading at 24.2. My plan is to simply let this position play itself out. If CNX closes above 24 today (likely, but not a lock), we will walk away with a nice $118 profit, or a yield of 5.17%.
Moving on to Eldorado Gold (EGO). Last month we bought stock at 15.45 and sold the May 16 call for $0.70.
Today the stock is trading at 15.95. My plan is to simply let this position play itself out. If EGO closes above 16 today (it will be close), we will walk away with a nice $125 profit, or a yield of 6.77%.
If the stock closes below 16 today, next week we will determine how to manage our remaining stock position.
Next up is Coupang (CPNG). Last month we bought the stock at 22.2 and sold the May 22.5 call for $1.20.
Today the stock is trading at 23. My plan is to simply let this position play itself out. If CPNG closes above 22.5 today (likely), we will walk away with a nice $150 profit, or a yield of 7.14%.
SweetGreen (SG) is the last stock we will discuss. We bought the stock at 21.8 and sold the May 21 call for $2.30.
Today the stock is trading at 32. My plan is to simply let this position play itself out. If SG closes above 21 today (likely), we will walk away with a nice $150 profit, or a yield of 7.69%.
Nice month of trades.
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