October Expiration
Today is the expiration of our three Profit Booster October positions. Here is where we stand with each …
Let’s begin with our Yeti (YETI) covered call. Initially, we bought the stock for 48 and sold the October 47.5 call for $2.80.
Today the stock is trading at 41. My plan is to simply let this position play itself out. If YETI closes below 47.5 today (likely), the October 47.5 call that we sold will expire worthless, and come next Monday/Tuesday we will decide if we should exit the stock position, or sell a new call.
Moving on to PBF Energy (PBF). Last month we bought stock at 54.3 and sold the October 55 call for $2.65.
Today the stock is trading at 49. My plan is to simply let this position play itself out. If PBF closes below 55 today (likely), the October 55 call that we sold will expire worthless, and come next Monday/Tuesday we will decide if we should exit the stock position, or sell a new call.
Next up is Dell (DELL). Last month we bought the stock at 70 and sold the October 70 call for $2.35.
Today the stock is trading at 66.5. My plan is to simply let this position play itself out. If DELL closes below 70 today (likely), the October 70 call that we sold will expire worthless, and come next Monday/Tuesday we will decide if we should exit the stock position, or sell a new call.
Stepping back, it’s been a pretty rough month for the market, though because we sold calls against our stock positions the pain in the CPB portfolio has been manageable.
Let’s see how the market trades early next week before deciding if we will exit these stocks or continue to sell calls to lower our cost basis.
