Last month the Cabot Profit Booster portfolio was full of winners. This month, as the December expiration cycle closes today, it is more of a mixed bag. Let’s dive into the numbers …
Let’s begin with our Cameco (CCJ) covered call. We have been selling calls for three months now, and may continue to do so next month.
Today the stock is trading at 22. My plan is to simply let this position play itself out. If CCJ closes below 25 today (likely), the December 25 call that we sold for $0.55 will expire worthless, and then we will address this position again on Monday/Tuesday.
Moving on to Global Foundries (GFS). Last month we bought stock at 57 and sold the December 55 call for $5.75.
Today the stock is trading at 60. My plan is to simply let this position play itself out. If GFS closes above 55 today (likely), we will walk away with a nice $275 profit, or a yield of 5.63%.
Next up is Marathon Oil (MRO). Last month we bought the stock at 32.70 and sold the December 33 call for $1.96.
Today the stock is trading at 27. My plan is to simply let this position play itself out. If MRO closes below 33 today (likely), the call we sold for $1.96 will expire worthless, and then we will address this position again on Monday/Tuesday.
WillScott Mobile (WSC) is the next stock we will discuss. We bought the stock at 46.45 and sold the December 45 call for $2.84.
Today the stock is trading at 45.5. My plan is to simply let this position play itself out. If WSC closes above 45 today (it’s going to be close), we will walk away from our position with a profit of $139, or a yield of 3.18%. However, should the stock close below 45, we will need to address this position on Monday/Tuesday.
Finally, let’s dive into Gap (GPS). We bought the stock at 14.62 and sold the December 15 call for $0.42.
Today the stock is trading at 13. My plan is to simply let this position play itself out. If GPS closes below 15 today (likely), the call that we sold for $0.42 will expire worthless, and then come Monday/Tuesday of next week we will address the stock position.
Expect to hear from me early next week, depending on market conditions, as to how we will manage those positions that are not called away today.
