Today is the third Friday of the month, which means it’s option expiration day.
We don’t have much activity for this June expiration, but we are excited about the upcoming month which is setting up to be very promising.
Let’s dive into the details…
URNM
Our Sprott Uranium Miners (URNM) calls are expiring today. We initially opened a position at $27.70 last year, and this should serve as a perfect example on how to monetize shares effectively.
Instead of just holding the stock and waiting for it to appreciate, we’ve been selling calls against our shares to earn premiums. This strategy has reduced our cost basis down to $22.10. Now, with the stock trading at $51.50, we are up $29.40 on this trade, resulting in a 140% return thus far.
This figure also doesn’t include the $1.75 in dividends we’ve received, which further boosts our profits. We are currently up over $3000 on the position for a minimum order.
We’ll continue using this strategy: selling calls every time the shares rally to keep monetizing the position. Currently, there’s nothing to do here. At the end of the day, the calls will expire, and the cash from the sale will be added to our account.