March Expiration
Today is the expiration of March options, including five positions in the Cabot Profit Booster portfolio. And I’m happy to report, despite the market being a bit “crazy” the last three weeks, four of our positions will very likely expire today for profits ranging from 4.5% to 18.6%, and one will expire mostly at breakeven. Here is the full breakdown:
Johnson Controls (JCI): Bought stock at 54.6 and sold the March 55 calls for $1.70. With the stock now trading at 61 we will likely walk away with a profit of $210 per covered call, plus the $0.25 dividend collected, or a yield of 4.5%.
You do not need to adjust this position, and come Monday we will not have a stock or option position in JCI.
Sonos (SONO): Bought stock at 27.5 and sold the March 30 call for $2.00. With the stock now trading now at 41.4 we will likely walk away with a profit of $450 per covered call, or a yield of 17.7%.
You do not need to adjust this position, and come Monday we will not have a stock or option position in SONO.
Goldman Sachs (GS): Bought stock at 281 and sold the March 285 call for $11.50. With the stock now trading at 353 we will likely walk away with a profit of $1,550 per covered call, or a yield of 5.8%.
You do not need to adjust this position, and come Monday we will not have a stock or option position in GS.
Aphria (APHA): Bought stock at 13.5 and sold the March 14 call for $1.65. With the stock now trading just above 20 we will likely walk away with a profit of $220 per covered call, or a yield of 18.6%.
You do not need to adjust this position, and come Monday we will not have a stock or option position in APHA.
Dynatrace (DT): Bought stock at 56.1 and sold the March 55 call for $4.60.
This is a closer call, but should DT close below the 55 strike, which is becoming more likely, I will make the decision next Monday or Tuesday to sell a new call to further lower our cost basis, or simply exit the position entirely.
I will keep you posted on DT early next week.