August Expiration
The market has been under pressure the last three weeks, which isn’t ideal but is hardly a disaster for the Profit Booster portfolio. This is largely due to the fact that we have been taking a more and more defensive stance with our positions.
In fact, two of our trades will almost surely expire for full profits today, one is right on the edge of full profit, while two others will likely be sold on Tuesday.
Let’s dive in …
Let’s begin with Las Vegas Sands (LVS), which we have been selling calls against for three months.
Today the stock is trading at 53. My plan is to simply let this position play itself out. If LVS closes below 58 today (very likely), the call we sold will expire worthless and then next Monday or Tuesday we will likely, though no guarantee, sell our stock position.
Moving on to Confluent (CFLT). Last month we bought stock at 33 and sold the August 32 call for $3.80.
Today the stock is trading at 32, which is right at our strike price. My plan is to simply let this position play itself out. If CFLT closes above 32 today, we will walk away with a nice profit, and if it closes below 32 we will be left with our stock position and will need to decide whether to sell the stock or sell another call next week.
Next up is TechnipFMC (FTI). Last month we bought the stock at 16.6 and sold the August 17 call for $0.75.
Today the stock is trading at 18. My plan is to simply let this position play itself out. If FTI closes above 17 today (very likely), we will walk away with a nice profit.
Noble (NE) is the next stock we will discuss. We bought the stock at 47 and sold the August 45 call for $3.70.
Today the stock is trading at 51. My plan is to simply let this position play itself out. If NE closes above 45 today (very likely), we will walk away with a nice profit.
United Airlines (UAL) is the last stock we will discuss. We bought the stock at 54.15 and sold the August 55 call for $1.62.
Today the stock is trading at 49. My plan is to simply let this position play itself out. If UAL closes below 55 today (very likely), the call we sold will expire worthless, and come next week we will likely sell our stock position.
Stepping back, expect to hear from me Monday/Tuesday regarding how we will manage our LVS/CFLT/UAL positions, as well as our exact profits in FTI and NE.
