January Expiration
The expiration of our January covered calls is today, and we have one position (UBER) likely to be called away for maximum gains (great scenario) and another (ADNT) that is too close to call and will likely come down to the close (good scenario).
Below are the details/profits from both trades … the bottom line is we are going to let these positions play themselves out, and you will not need to act on either trade today.
Uber (UBER): Bought stock at 53.50 and sold the January 55 call for $3.
With the stock trading at 57.40 right now, most likely we will walk away with a profit of $450 per covered call, or a yield of 8.9%.
You do not need to adjust this position and come Monday we will not have a stock or option position in UBER.
Adient (ADNT): Bought stock at 35.30 and sold the January 36 call for $2.15.
This trade is a very close call. With the stock trading at 35.60 right now, it is not clear if we will be assigned.
If so, we will walk away with our profit of $285 per covered call, or a yield of 8.6%.
If not, I will either sell a February call covering this position on Tuesday, or will simply sell out of the stock. I will keep you posted.