Today is the expiration of our three January covered call positions. Below are the details, with where we stand with each position … with the headline being we are going to let each position play itself out, and will evaluate where we stand early next week.
Let’s begin with our Shoals (SHLS) covered call. Initially, we bought the stock for 29.8 and sold the January 30 call for $3.50.
Today the stock is trading at 27. My plan is to simply let this position play itself out. If SHLS closes above 30 today (likely), the call will expire worthless, and come early next week we will either sell the stock position, or sell a new call.
Moving on to Academy Sports (ASO). Last month we bought stock at 55 and sold the January 55 call for $3.25.
Today the stock is trading at 53. My plan is to simply let this position play itself out. If ASO closes below 55 today (likely), the call will expire worthless, and come early next week we will either sell the stock position, or sell a new call.
D.R. Horton (DHI) is the last stock we will discuss. We bought the stock at 88.5 and sold the January 85 call for $6.
Today the stock is trading at 92. My plan is to simply let this position play itself out. If DHI closes above 85 today, we will walk away with a nice $250 profit, or a yield of 3.03%.
