July Expiration
Today is the expiration of our six July covered call trades. The headline on how we will manage these trades today is five of those trades (DKNG, URBN, IOT, CCJ, U) will likely expire for their full profits, and one stock (LVS) we will likely sell a new call against next week. Please note, while there are a lot of details below, the big takeaway should be that you don’t need to make any adjustments today.
Let’s begin with our Las Vegas Sands (LVS) covered call. Initially, we bought the stock for 63.5 and have sold calls for the past two months. Our latest sale was the July 60 call for $1.60.
Today the stock is trading at 57.5. My plan is to simply let this position play itself out. If LVS closes below 60 today, we will let our call expire worthless, and then we will likely sell a new call on Tuesday.
Moving on to DraftKings (DKNG). Two months ago, we bought stock at 25.2 and have sold calls for the past two months. Our latest sale is the July 25 call for $1.40.
Today the stock is trading at 31.25. My plan is to simply let this position play itself out. If DKNG closes above 25 today (very likely), we will walk away with a nice $265 profit for two months of work, or a yield of 11.15%.
Next up is Urban Outfitters (URBN). Last month we bought the stock at 31.1 and sold the July 32 call for $1.50.
Today the stock is trading at 35. My plan is to simply let this position play itself out. If URBN closes above 32 today (likely), we will walk away with a nice $240 profit, or a yield of 8.1%.
Samsara (IOT) is the next stock we will discuss. We bought the stock at 28.7 and sold the July 25 call for $4.70.
Today the stock is trading at 27.5. My plan is to simply let this position play itself out. If IOT closes above 25 today (likely), we will walk away with a nice $100 profit, or a yield of 4%.
Next up is Cameco (CCJ). Last month we bought the stock at 32.3 and sold the July 32 call for $1.76.
Today the stock is trading at 33. My plan is to simply let this position play itself out. If CCJ closes above 32 today (could be close), we will walk away with a nice $146 profit, or a yield of 4.78%.
Unity Software (U) is the last stock we will discuss. We bought the stock at 38.85 and sold the July 35 call for $5.15.
Today the stock is trading at 45. My plan is to simply let this position play itself out. If U closes above 35 today (very likely), we will walk away with a nice $130 profit, or a yield of 3.85%.
Nice month of trades!
