September Expiration
Tomorrow is the expiration of our three September Covered Calls. Here is where we stand with each …
Let’s begin with our Sprouts Farmers Market (SFM) covered call. Initially, we bought the stock for 96 and sold the September 95 call for $5.20.
Today the stock is trading at 105. My plan is to simply let this position play itself out. If SFM closes above 95 tomorrow (very likely), we will walk away with our profit of $420 per covered call, or a yield of 4.62%.
Moving on to Coupang (CPNG). Last month we bought stock at 22.6 and sold the September 23 call for $0.80.
Today the stock is trading at 24.4. My plan is to simply let this position play itself out. If CPNG closes above 23 tomorrow (likely) we will walk away with our profit of $120 per covered call, or a yield of 5.5%.
Finally there’s Sweetgreen (SG). Last month we bought the stock at 34.9 and sold the September 34 call for $2.90.
Today the stock is trading at 36. My plan is to simply let this position play itself out. If SG closes above 34 tomorrow (likely), we will walk away with our profit of $200 per covered call, or a yield of 6.25%.
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