April Expiration
The expiration of our April covered calls is tomorrow, and our positions are working very well, though several are now trading below the strike price of our covered call options.
If these stocks close out the week on Friday below the strike, the calls will expire worthless, and we will keep 100% of the premiums earned. If that is case you won’t need to act, and early next week we will most likely sell those stock positions and move on. Meanwhile, one position is trading well above our covered call strike and is likely to be called away.
Here are the details/profits from these trades.
AZEK Co. (AZEK): Bought stock at 46.5 and sold the April 50 calls for $2.00.
With the stock now trading at 47 our call is likely to expire worthless, resulting in a profit of $200 per covered call, or a yield of 4.5%, and potentially a slight gain on the stock.
You do not need to adjust this position and come Monday we will likely sell AZEK stock.
Amkor (AMKR): Bought stock at 24 and sold the April 25 call for $1.75.
With the stock now trading now at 24.4 our call is likely to expire worthless, resulting in a profit of $175 per covered call, or a yield of 7.9%, and potentially a slight gain on the stock.
You do not need to adjust this position and come Monday we will likely sell AMKR stock.
Summit Materials (SUM): Bought stock at 28.7 and sold the April 30 call for $1.20.
With the stock now trading now at 29.5 our call is likely to expire worthless, resulting in a profit of $120 per covered call, or a yield of 4.4%, and potentially a slight gain on the stock.
You do not need to adjust this position and come Monday we will likely sell SUM stock.
TripAdvisor (TRIP): Bought stock at 51 and sold the April 55 call for $1.85.
With the stock now trading now at 51.6 our call is likely to expire worthless, resulting in a profit of $185 per covered call, or a yield of 3.8%, and potentially a slight gain on the stock.
You do not need to adjust this position and come Monday we will likely sell TRIP stock.
ZoomInfo (ZI): Bought stock at 49.6 and sold the April 50 call for $2.35.
With the stock now trading now at 48 our call is likely to expire worthless, resulting in a profit of $235 per covered call, or a yield of 4.97%, and potentially a slight loss on the stock.
You do not need to adjust this position and come Monday we will likely sell ZI stock.
Abercrombie & Fitch (ANF): Bought stock at 33 and sold the April 33 call for $2.30.
With ANF shares now trading at 40, this position will likely be called away and we will walk away with a profit of $230 per covered call, or a yield of 7.5%.
You do not need to adjust this position and come Monday we will not have a stock or option position in ANF.
Stepping back to examine all of these positions … it was another good month for the Profit Booster portfolio. And while we have some positions that may approach our strike prices by tomorrow, you do not need to act on these trades, and we will re-evaluate where we stand come Monday morning.