October Expiration
Today is the expiration of our four October covered call positions. The good news is four positions (IOT, DOCS, CART, UAL) will close at their full profit and one (RKT) is in decent shape but will need attention next week
Let’s begin with our Rocket (RKT) covered call. Initially, we bought the stock for 20.55 and sold the October 20 call for $1.80.
Today the stock is trading at 18. My plan is to simply let this position play itself out. If RKT closes below 20 today (very likely), we will let the call expire worthless, and next week we will likely sell our stock position, or sell a new call.
Moving on to Samsara (IOT). Last month we bought the stock at 46.9 and sold the October 45 call for $3.70.
Today the stock is trading at 50. My plan is to simply let this position play itself out. If IOT closes above 45 today (likely) our trade will close at its full profit of $180 per covered call, or a yield of 4.16%, and come next week we will be left without a stock or option position.
Next up is Doximity (DOCS). Last month we bought the stock at 40.4 and sold the October 40 call for $1.80.
Today the stock is trading at 43. My plan is to simply let this position play itself out. If DOCS closes above 40 today (very likely), our trade will close at its full profit of $140 per covered call, or a yield of 3.62%, and come next week we will be left without a stock or option position.
Moving on to United Airlines (UAL). Last month we bought the stock at 55.8 and sold the October 56 calls for $2.60.
Today the stock is trading at 75. My plan is to simply let this position play itself out. If UAL closes above 56 today (very likely), our trade will close at its full profit of $280 per covered call, or a yield of 5.26%, and come next week we will be left without a stock or option position.
Finally, let’s look at Maplebear (CART). Last month we bought stock at 39.5 and sold the October 40 call for $1.20.
Today the stock is trading at 43. My plan is to simply let this position play itself out. If CART closes above 40 today (likely) we will walk away with our profit of $170 per covered call, or a yield of 4.43%.
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