October Expiration
The Cabot Profit Booster portfolio has three positions set to expire this afternoon. My plan is to simply let these calls expire, and then we will evaluate where we stand with the stocks come Monday/Tuesday morning, depending on market conditions.
This is what I mean …
The ASO October 50 call that we sold for $2.13 will almost surely expire worthless today (good), leaving us with our stock position, and no option position, Monday. At that point, I will decide if we should exit our stock position or sell a new call.
Similarly, the LVS October 40 call that we sold for $2.87 will almost surely expire worthless today (good), leaving us with our stock position, and no option position, Monday. At that point, I will decide if we should exit our stock position or sell a new call.
Finally, our ON October 65 call will come down to the wire. The stock is trading $0.40 below the strike as of 2 pm ET. Should it rise above 65 on the close today we will walk away with our full profit and no position in ON (great). Should the stock close below 65, the call that we sold for $3.77 will expire worthless (good) and, come Monday, we will be left with our stock position.
Stepping back, let’s evaluate these positions on Monday/Tuesday.
