September Expiration
August and September have brought plenty of ups and downs for the stock market, and not surprisingly the Profit Booster also had its ups and downs. One of our trades didn’t work, two are good, and two will expire for full profits. Let’s dive in …
Let’s begin with our Qualcomm (QCOM) covered call. Initially, we bought the stock for 151.70 and sold the September 140 call for $17.55. The sale of an in-the-money call was an ultra-defensive play, and even the huge call premium couldn’t buffer us from the stock’s massive decline.
Today the stock is trading at 125. My plan is to simply let this position play itself out. If QCOM closes below 140 today (likely), the call we sold will expire worthless, and then early next week we will sell our stock position out.
Moving on to Shoals Technologies (SHLS). Last month we bought stock at 22.20 and sold the September 17.5 call for $5.60.
Today the stock is trading at 25. My plan is to simply let this position play itself out. If SHLS closes above 17.5 today (likely), we will walk away with a nice $90 profit, or a yield of 5.42%.
This trade worked well.
Next up is Oak Street Health (OSH). Last month we bought the stock at 29 and sold the September 30 call for $2.10.
Today the stock is trading at 28.25. My plan is to simply let this position play itself out. If OSH closes below 30 today (likely), the call will expire worthless, and next week we will evaluate if we should sell the stock out, or continue to sell calls. This trade worked fairly well, for now.
Now let’s dive in to Global Foundries (GFS). Last month we bought the stock at 63 and sold the September 60 call for $5.70.
Today the stock is trading at 57.5. My plan is to simply let this position play itself out. If GFS closes below 60 today (likely), the call we sold will expire worthless, and next week we will evaluate if we should sell the stock out, or continue to sell calls. This trade worked well, for now.
Wingstop (WING) is the last stock we will discuss. We bought the stock at 120 and sold the September 115 call for $10.39.
Today the stock is trading at 136. My plan is to simply let this position play itself out. If WING closes above 115 today (likely), we will walk away with a nice $535 profit, or a yield of 4.88%.