April Expiration
Because the stock and options markets will be closed tomorrow/Friday for Good Friday, today is the expiration of April options. Here is where we stand with our April positions …
Let’s begin with our Royalty Pharma (RPRX) covered call. Initially, we bought the stock for 32 and sold the April 35 call for $0.75.
Today the stock is trading at 32.5. My plan is to simply let this position play itself out. If RPRX closes below 35 today (very likely), we will let the call expire worthless, and next week we will likely sell our stock position.
Next up is Exelixis (EXEL). Last month, we bought the stock at 38.25 and sold the April 39 call for $2.20.
Today the stock is trading at 36.25. My plan is to simply let this position play itself out. If EXEL closes below 39 today (very likely), the call will expire worthless, and next week we will likely sell out of our stock position.
Moving on to Uber (UBER). Last month, we bought the stock at 72 and sold the April 70 call for $5.40.
Today the stock is trading at 74. My plan is to simply let this position play itself out. If UBER closes above 70 today (likely), we will walk away with our profit of $3.40 per covered call, or a yield of 5.1%.
Next up is Rubrik (RBRK). Last month, we bought the stock at 70 and sold the April 70 call for $4.60.
Today the stock is trading at 62. My plan is to simply let this position play itself out. If RBRK closes below 70 today (very likely), the call will expire worthless and next week we will likely sell out of our stock position.
The last stock from the April expiration cycle is Southwest Airlines (LUV). Initially, we bought the stock for 32.5 and sold the April 33 call for $0.80.
Today the stock is trading at 25. My plan is to simply let this position play itself out. If LUV closes below 33 today (very likely), we will let the call expire worthless, and next week we will likely sell our stock position.
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