July Expiration
Today is the expiration of five of our July covered call trades. And despite the market having some ups, and even more downs, the Profit Booster portfolio had a pretty good month. Let’s dive in …
Let’s begin with our EQT (EQT) covered call. Two months ago, we got involved with EQT via a June covered call. That June option expired worthless, and then we sold the July 38 call, which is likely on its way to expiring worthless as well.
Today the stock is trading at 36. My plan is to simply let this position play itself out. If EQT closes below 38 today (likely), we will let this option expire and then early next week I will decide whether we should exit our stock position or continue to sell calls.
Somewhat similarly, we originally bought Dollar Tree (DLTR) two months ago, sold a June call, and then extended the trade via a July call sale.
Today the stock is trading at 170. My plan is to simply let this position play itself out. If DLTR closes above 160 today (likely), we will walk away with two call sales and a nice $860 profit, or a yield of 5.38%.
Moving on to Academy Sports and Outdoors (ASO). Last month we bought stock at 33.50 and sold the July 32 call for $3.24.
Today the stock is trading at 38.5. My plan is to simply let this position play itself out. If ASO closes above 32 today (likely), we will walk away with a nice $174 profit, or a yield of 5.75%.
Next up is Halozyme (HALO). Last month we bought the stock at 45.90 and sold the July 45 call for $2.29.
Today the stock is trading at 48. My plan is to simply let this position play itself out. If HALO closes above 45 today (likely) we will walk away with a nice $139 profit, or a yield of 3.25%.
JD.com (JD) is the last stock we will discuss. We bought the stock at 65.20 and sold the July 66 call for $2.96.
Today the stock is trading at 59. My plan is to simply let this position play itself out. If JD closes below 66 today (likely) the July call will expire worthless, and then early next week I will decide whether we should exit our stock position or continue to sell calls.