June Expiration
Today is the expiration of four of our June covered call positions. The good news is two of our positions will almost certainly close for their full profits, one is at our ideal spot, though the position will go down to the wire, and the other trade is doing just fine.
Let’s begin with our Las Vegas Sands (LVS) covered call. Initially, we bought the stock for 63.5 and sold the June 65 call for $2.50.
Today the stock is trading at 59. My plan is to simply let this position play itself out. If LVS closes below 65 today (very likely), the call we sold will expire worthless, and then come Wednesday of next week we will likely sell a new call.
Moving on to Shake Shack (SHAK). Last month we bought stock at 66.5 and sold the June 65 call for $4.30.
Today the stock is trading at 72.5. My plan is to simply let this position play itself out. If SHAK closes above 65 today (very likely), we will walk away with a nice $280 profit, or a yield of 4.5%.
Next up is Exact Sciences (EXAS). Last month we bought the stock at 79.6 and sold the June 80 call for $4.03.
Today the stock is trading at 95. My plan is to simply let this position play itself out. If EXAS closes above 80 today (very likely), we will walk away with a nice $443 profit, or a yield of 5.86%.
Finally, let’s dive into our DraftKings (DKNG) covered call. Last month we bought the stock at 25.2 and sold the June 25 call for $1.45.
Today the stock is trading at 25. My plan is to simply let this position play itself out. If DKNG closes above 25 today, we will walk away with a nice $125 profit, or a yield of 5.26%. If the stock closes below 25 today, the call we sold will expire worthless, and we will likely sell a new call Wednesday of next week.
