June Expiration
Despite many ups and downs, and a trade that went south fast (ZIM), the CPB portfolio held up fairly well during the most recent market rout. Not all trades are winners, but big picture, given the carnage, I’m fairly happy with June expirations trades. Let’s dive in:
Let’s begin with our EQT (EQT) covered call. Initially, we bought the stock for 42.5 and sold the June 42 call for $4.10.
Today the stock is trading at 36.40. My plan is to simply let this position play itself out. If EQT closes below 42 today (likely), our short call will expire worthless this afternoon.
Then on Tuesday/Wednesday of next week (the market is closed Monday) we will either sell a new call to further lower our cost basis, or simply sell our stock and move on.
Moving on to Delek (DK). Last month we bought stock at 25 and sold the June 25 call for $2.15.
Today the stock is trading at 29. My plan is to simply let this position play itself out. If DK closes above 25 today (likely) we will walk away with a nice $215 profit, or a yield of 9.4%.
Next up is Halo (HALO). Last month we bought the stock at 42.85 and sold the June 42 call for $2.45.
Today the stock is trading at 44. My plan is to simply let this position play itself out. If HALO closes above 42 today (likely), we will walk away with a nice $160 profit, or a yield of 3.96%.
Next up is Bumble (BMBL). Last month we bought the stock at 25.5 and sold the June 25 call for $2.50.
Today the stock is trading at 28. My plan is to simply let this position play itself out. If BMBL closes above 25 today (likely), we will walk away with a nice $200 profit, or a yield of 8.69%.
Dollar Tree (DLTR) is the last stock we will discuss. We bought the stock at 160.25 and sold the June 160 call for $5.30
Today the stock is trading at 150. My plan is to simply let this position play itself out. If DLTR closes below 160 (likely), the 160 call will expire worthless this afternoon.
Then on Tuesday/Wednesday of next week (the market is closed Monday) we will either sell a new call to further lower our cost basis, or simply sell our stock and move on.