February Expiration
Today is the expiration of our three February covered calls. The big picture takeaway is that all three will expire for full profits, you don’t need to act on any of these trades, and come Monday we will no longer own a stock or option position in MRO, TECK and ABBV.
Now let’s get into the details …
Let’s begin with our Marathon Oil (MRO) covered call. Initially, we bought the stock for 17.80 and sold the February 18 call for $1.02.
Today the stock is trading at 22. My plan is to simply let this position play itself out. If MRO closes above 18 today (likely), we will walk away with a nice $122 profit, or a yield of 7.27%.
Of note, some CPB subscribers had their MRO covered call position called away early. That is a fine situation as you essentially locked in your full profit a couple days early.
Moving on to Teck Resources (TECK). Last month we bought stock at 35 and sold the February 33 call for $2.87.
Today the stock is trading at 36. My plan is to simply let this position play itself out. If TECK closes above 33 today (likely), we will walk away with a nice $87 profit, or a yield of 2.7%.
Next up is AbbVie (ABBV). Last month we bought the stock at 132 and sold the February 132 call for $4.20.
Today the stock is trading at 145. My plan is to simply let this position play itself out. If ABBV closes above 132 today (likely), we will walk away with a nice $420 profit, or a yield of 3.28%.