This brief Automatic Data Processing, Inc. (ADP) article provides an update on the August 2019 covered call option contracts I wrote in May 2019.
I was hoping ADP's share price would stay below $165 so the options would expire worthless meaning I would retain 100% of the premium I collected. Such has not been the case as ADP's share price jumped to just above $167 on August 16th.
I certainly do not want to have any of my ADP shares called away so I closed my position at a cost of $2.25/share. I then wrote November 2019 $180 covered call contracts and collected $2.30/share. By doing so I am not out of pocket any money.
I certainly hope ADP's share price does not rise to the $180 level any time soon. I want to acquire more ADP shares and am hoping for a broad market pullback which includes a retracement in ADP's share price to the mid $150s.
I hope you enjoyed this post and I wish you much success on your journey to financial freedom.
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Disclaimer: I have no knowledge of your individual circumstances and am not providing individualized advice or recommendations. I encourage you not to make any investment decision without conducting your own research and due diligence. You should also consult your financial advisor about your specific situation.
Disclosure: I am long ADP.
I wrote this article myself and it expresses my own opinions. I am not receiving compensation for it and have no business relationship with any company whose stock is mentioned in this article.