November Expiration
Today is the expiration of our five November Covered Calls. Here is where we stand with each …
Let’s begin with our ON Holdings (ON) covered call. Initially, we bought the stock for 51.9 and sold the November 50 call for $4.92.
Today the stock is trading at 52. My plan is to simply let this position play itself out. If ONON closes above 50 today (likely), we will walk away with our profit of $302 per covered call, or a yield of 6.42%.
Moving on to Robinhood (HOOD). Last month we bought stock at 26.2 and sold the November 27 call for $1.90.
Today the stock is trading at 31.5. My plan is to simply let this position play itself out. If HOOD closes above 27 today (very likely) we will walk away with our profit of $270 per covered call, or a yield of 11.11%.
Next up is Delta Airlines (DAL). Last month we bought the stock at 54.4 and sold the November 55 call for $1.75.
Today the stock is trading at 64.5. My plan is to simply let this position play itself out. If DAL closes above 55 today (very likely) we will walk away with our profit of $235 per covered call, or a yield of 4.46%.
Moving on to Credo (CRDO). Last month we bought stock at 41.3 and sold the November 40 call for $3.
Today the stock is trading at 40. My plan is to simply let this position play itself out, and this is going to be close. Essentially, if the stock closes above 40 we will walk away with our profits, but if it doesn’t close above 40 the call we sold will expire worthless and next week we will need to decide to sell a new call, or simply exit the stock position.
Finally, let’s look at Alcoa (AA). Two weeks ago, we bought the stock for 41.9 and sold the November 41.5 call for $1.90.
Today the stock is trading at 44.5. My plan is to simply let this position play itself out. If AA closes above 41.5 today (likely) we will walk away with our profit of $150 per covered call, or a yield of 3.75%.
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