The spectacular results from the Cabot Profit Booster portfolio continued in August as we will likely close four positions tomorrow for yields as high as 17%.
As I’ve said in the past, at some point we will take a loss again (I promise), but until then we will keep racking up the profits.
Here is my breakdown on our four positions expiring tomorrow …
On June 30th we bought InVitae (NVTA) stock at 28.75 and sold the August 30 call for $2.97.
With the stock trading at 33, we will walk away with our profit of $422 per covered call, or a yield of 16.36%. You do not need to adjust this position and come Monday we will not have a stock or option position in NVTA.
Upwork (UPWK) has been our most volatile position in August. To recap, on July 7th we bought stock at 14.65 and sold the August 15 call for $1.65.
With the stock trading at 14.80, we are going to let this situation play itself out.
If UPWK stock closes over the 15 strike tomorrow we will be without a stock or option position on Monday.
If UPWK closes under the 15 strike the option will expire worthless and then come Monday I will determine if we will sell the stock, or continue to sell calls.
Big picture this is a good situation.
On July 14th we bought Sunrun (RUN) stock at 29.5 and sold the August 30 call for $2.70.
With the stock trading at 46.5, we will walk away with our profit of $320 per covered call, or a yield of 11.94%. You do not need to adjust this position and come Monday we will not have a stock or option position in RUN.
On July 21st we bought Plug Power (PLUG) stock at 9 and sold the August 9.5 call for $0.90.
With the stock trading at 13, we will walk away with our profit of $140 per covered call, or a yield of 17.28%. You do not need to adjust this position and come Monday we will not have a stock or option position in PLUG.