It was another fantastic month for the Cabot Profit Booster portfolio, and with today being the expiration of July options we are likely going to close seven positions for full profits ranging from 5.4% to 12.3%. Here are the details and instructions …
Let’s start with Floor & Decor (FND) which we bought many months ago during the market malaise, and it’s been a wild ride. We bought stock at 57.05 and sold the July 57.5 call for $5.70.
With the stock trading at 61.5, we will walk away with our profit of $615 per covered call, or a yield of 11.97%. You do not need to adjust this position and come Monday we will not have a stock or option position in FND.
Moving on to Inphi (IPHI). We bought stock at 112.5 and sold the July 115 call for $7.10.
With the stock trading at 121, we will walk away with our profit of $960 per covered call, or a yield of 9.1%. You do not need to adjust this position and come Monday we will not have a stock or option position in IPHI.
Next up is Pan American Silver (PAAS). We bought stock at 29.25 and sold the July 31 call for $1.65.
With the stock trading at 33.5, we will walk away with our profit of $340 per covered call, or a yield of 12.31%. You do not need to adjust this position and come Monday we will not have a stock or option position in PAAS.
Marvel (MRVL) is within range of needing attention, though I don’t anticipate it will be the case. To recap, We bought stock at 35.3 and sold the July 35 call for $2.10.
With the stock trading at 36.85, we will walk away with our profit of $180 per covered call, or a yield of 5.42%. You do not need to adjust this position and come Monday we will not have a stock or option position in MRVL.
Our Horizon Therapeutics (HZNP) trade was a breeze as the stock has been solid. We bought stock at 46.75 and sold the July 50 call for $1.95.
With the stock trading at 57, we will walk away with our profit of $520 per covered call, or a yield of 11.6%. You do not need to adjust this position and come Monday we will not have a stock or option position in HZNP.
Peloton (PTON) was easy money as we bought stock at 49.1 and sold the July 50 call for $3.90.
With the stock trading at 60, we will walk away with our profit of $480 per covered call, or a yield of 10.61%. You do not need to adjust this position and come Monday we will not have a stock or option position in PTON.
We were fortunate to buy Big Lots (BIG) right before the company raised guidance. We bought stock at 33.4 and sold the July 35 call for $1.40.
With the stock trading at 36, we should walk away (though no guarantee as the stock is only $1 above our short strike price) with our profit of $300 per covered call, or a yield of 9.37%. You do not need to adjust this position and come Monday we will not have a stock or option position in BIG.