November Expiration
Today is the expiration of six of our November covered call positions. I am going to do a deep dive into each position below, but the headline of sorts is you don’t need to act on any of these trades today. Let’s dive in …
Let’s begin with our Dell (DELL) covered call. Initially, we bought the stock for 70 and sold October 70 calls, and then the November 68 calls.
Today the stock is trading at 73.75. My plan is to simply let this position play itself out. If DELL closes above 68 today (very likely), we will walk away with a $190 profit, or a yield of 2.8%.
Moving on to Vertiv (VRT). Last month we bought stock at 36 and sold the November 35 call for $3.70.
Today the stock is trading at 43.25. My plan is to simply let this position play itself out. If VRT closes above 35 today (very likely), we will walk away with a nice $270 profit, or a yield of 8.35%.
Next up is Nutanix (NTNX). Last month we bought the stock at 34.5 and sold the November 35 call for $3.70.
Today the stock is trading at 39. My plan is to simply let this position play itself out. If NTNX closes above 35 today (very likely), we will walk away with a nice $420 profit, or a yield of 13.63%.
Range Resources (RRC) is the next stock we will discuss. We bought the stock at 34.7 and sold the November 35 call for $1.90.
Today the stock is trading at 33.75. My plan is to simply let this position play itself out. If RRC closes above below 35 today (likely), the November 35 call that we sold for $1.90 will expire worthless and next week I will decide if we should sell more calls, or simply exit our stock position.
Next up is Permian Resources (PR). Last month we bought the stock at 15.2 and sold the November 15 call for $0.90.
Today the stock is trading at 13.25. My plan is to simply let this position play itself out. If PR closes below 15 today (likely), the November 15 call that we sold for $0.90 will expire worthless and next week I will decide if we should sell more calls, or simply exit our stock position.
American Eagle Outfitters (AEO) is the last stock we will discuss. We bought the stock at 17.8 and sold the November 17.5 call for $1.
Today the stock is trading at 19.75. My plan is to simply let this position play itself out. If AEO closes above 17.5 today (likely), we will walk away with a $70 profit, or a yield of 4.16%.
