June’s bond replacement investment ideas continue to perform well, though July’s picks have been only so-so so far. Here is our summary workbook for our recent Covered Call Corner spreadsheets.
One note on the June Covered Call Corner ideas whose options are set to expire in two weeks, on September 16. Three of these stocks are well higher than the strike price at which we wrote the options, but one – Verint Systems (VRNT) – is close to the original strike price. Thanks to the steady wasting of option time value, the investment in Verint has already returned 4.6% in two months, even though the stock has barely moved.
In times like these, if I am satisfied with my return on the bond replacement investment and have no particular desire to hold the shares, I usually realize profits by closing the position. When I have a strong view on valuation and want to hold the stock, obviously, I keep the position open until expiration, and either initiate the same position over again or buy the shares outright.
Without further ado, here is the spreadsheet. Please reach out to us if you have any questions!