The November expiration cycle was a great month for the Cabot Profit Booster portfolio as we will have three positions expire for full profits (IGT, BLDR, DDOG), while one is at a profit though it may not reach its peak potential (MRO). More on that below …
Let’s begin with our IGT covered call. Initially, we bought the stock for 28.1 and sold the November 26 call for $3.50.
Today the stock is trading at 29. My plan is to simply let this position play itself out. If IGT closes above 26 Friday (likely), we will walk away with a nice $140 profit, or a yield of 5.69%.
Moving on to BLDR, last month we bought stock at 55.5 and sold the November 55 call for $3.40.
Today the stock is trading at 71.5. My plan is to simply let this position play itself out. If BLDR closes above 55 Friday (likely), we will walk away with a nice $290 profit, or a yield of 5.56%.
Next up is DDOG. Last month we bought the stock at 157.6 and sold the November 152.5 call for $12.50.
Today the stock is trading at 190. My plan is to simply let this position play itself out. If DDOG closes above 152.5 Friday (likely), we will walk away with a nice $740 profit, or a yield of 5.09%.
MRO is the last stock expiring this week. We bought the stock at 16.87 and sold the November 16.5 call for $1.01.
Today the stock is trading at 16.30. My plan is to simply let this position play itself out, and see where MRO closes tomorrow.
If the stock closes above 16.5 we will have our full profit of $64 per covered call.
If the stock closes below 16.5, we will likely sell our stock Monday or Tuesday morning of next week.