I am recommending we close our LEAP call spread positions in Apple (AAPL), Moderna (MRNA) and Microsoft (MSFT).
We are not day traders. But the profit we are sitting on in the MRNA spread we put on yesterday is simply too good to pass up. By closing now, we will earn a 7.7% absolute return over our cost basis and an astounding 1,410% annualized return.
Our annualized return in MSFT is also impressive at 164%. With AAPL, our annualized return is only 21%, but I do not expect the position to yield much more, so it is time to move on.
AAPL Sept 2022 Call (9/16/22) 120/Aug Week Four (8/27) 150 Call Spread
Current Stock Price: $148.23
Cost Basis: $31.06
Action:
- Buy to close the AAPL Aug Week Four (8/27) 150 Call for around $0.39
- Sell to close the AAPL Sept 2022 Call (9/16/22) 120 Call for around $34.90
Profit: $3.45, or $345 per spread
MRNA Jan Monthly (1/21/22) 350/Aug Week Four (8/27) 415 Call Spread
Current Stock Price: $404.92
Cost Basis: $82.85
Action:
- Buy to close the MRNA Aug Week Four (8/27) 415 Call for around $5.55
- Sell to close the MRNA Jan Monthly (1/21/22) 350 Call for around $94.80
Profit: $6.40, or $640 per spread
MSFT Sept 2022 (9/16/22) 250/Aug Week Four (8/27) 295 Call Spread
Current Stock Price: $301.98
Cost Basis: $50.84
Action:
- Buy to close the MSFT Aug Week Four (8/27) 295 Call for around $7.35
- Sell to close the MSFT Sept 2022 (9/16/22) 250 Call for around $64.80
Profit: $6.61, or $661 per spread