March Expiration
Despite the market falling dramatically the past month, the Cabot Profit Booster portfolio had a great March expiration cycle as three trades will close for full profits, while one is at a loss. Let’s dive in …
Starting with our Corning (GLW) covered call, initially, we bought the stock for 42.2 and sold the March 42 call for $1.45.
Today the stock is trading at 37.5. My plan is to simply let this position play itself out, and come early next week we will decide if we should exit the remaining stock position, or sell a new call to lower our cost basis. The biggest driver of this decision will be how the market trades today/Monday.
Moving on to Allegheny Technologies (ATI). Last month we bought stock at 23.2 and sold the March 22.5 call for $1.75.
Today the stock is trading at 26. My plan is to simply let this position play itself out. If ATI closes above 22.5 today (likely), we will walk away with a nice $105 profit, or a yield of 4.89%.
Next up is Occidental Petroleum (OXY). Last month we bought the stock at 39.9 and sold the March 40 call for $2.75.
Today the stock is trading at 58. My plan is to simply let this position play itself out. If OXY closes above 40 today (very likely), we will walk away with a nice $285 profit, or a yield of 7.67%.
Marathon Oil (MRO) is the last stock we will discuss. We bought the stock at 22.05 and sold the March 22 call for $1.25.
Today the stock is trading at 23.25. My plan is to simply let this position play itself out. If MRO closes above 22 today (likely, but not a certainty), we will walk away with a nice $120 profit, or a yield of 5.76%.