Hello Investors,
April options expiration has come to a close today. Most of our options expire over this weekend for a profit of the credit received. We had two trades to manage as detailed in today’s class (video available).
We closed up our 34/36 strike 1×2 call spread in EEM for a nice profit. We also bought back our short EEM 36.00 strike call in Fidelity for a small profit.
We hedged our SPY short call trade with 50 shares of long stock today. Since the market rallied at the end of the day to close just above the strike price, our option is “in-the-money” and will exercise over the weekend. We have 50 shares to cover the promise we made. The other 50 we left uncovered and it will be delivered to us as a short position over this weekend. So, on Monday we will have a -50 share short stock position. We may close that stock position and simply resell another OTM call? We will send updates on this trade at the first part of next week.
A really great expiration cycle, have a nice weekend!