May Expiration
Today is the expiration of our five May covered calls, and the good news is all should expire for full profits and you will not need to address these positions today. Let’s dive in …
Let’s begin with our AngloGold Ashanti (AU) covered call. Initially, we bought the stock for 35.75 and sold the May 36 call for $2.10.
Today the stock is trading at 40. My plan is to simply let this position play itself out. If AU closes above 36 today (likely), we will walk away with a nice $235 profit, or a yield of 6.98%.
Moving on to Monster Beverage (MNST). Last month we bought stock at 57 and sold the May 57.5 call for $2.65.
Today the stock is trading at 62. My plan is to simply let this position play itself out. If MNST closes above 57.5 today (likely), we will walk away with a nice $315 profit, or a yield of 5.79%.
Next up is Comstock Resources (CRK). Last month we bought the stock at 19.2 and sold the May 19 call for $1.70.
Today the stock is trading at 24. My plan is to simply let this position play itself out. If CRK closes above 19 today (likely), we will walk away with a nice $150 profit, or a yield of 8.57%.
Moving on to Uber (UBER). Last month we bought stock at 75 and sold the May 70 call for $7.55.
Today the stock is trading at 90. My plan is to simply let this position play itself out. If UBER closes above 70 today (likely), we will walk away with a nice $255 profit, or a yield of 3.78%.
Toast (TOST) is the last stock we will discuss. We bought the stock at 36 and sold the May 36 call for $2.60.
Today the stock is trading at 45. My plan is to simply let this position play itself out. If TOST closes above 36 today (likely), we will walk away with a nice $260 profit, or a yield of 7.78%.
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