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Call Writing Strategy - Part 5 Adding SNDK

|Includes:eBay Inc. (EBAY), LAZ, LVS, RIG, WDC

After reviewing the status of the "call" portfolio, I decided to add another position (SNDK) with an October expiration date.

All of the previous additions & activity can be viewed here on this blog.

last update was here : http://seekingalpha.com/instablog/706857-fear-greedtrader/2137592-call-writing-strategy-part-4-update

Purchased 500 Shs. of SNDK @ 56.74 and sold the Oct $57.50 call for @2.60. We will bring in $1,290 in income if the stock is not "called away". That will equate to a 4.5% yield from today Aug. 26th until Oct. 18th ,which is approximately 7 weeks from now.

If in fact the shares are called, the position will yield 5.9% for the same time period.

Below is the table with the new trade added :

(click to enlarge)Click to enlarge

(SNDK) represents good value at these levels with solid growth and a forward PE of 11.4 After the company's latest earnings report they initiated a dividend (yield 1.6%) and announced an expansion of their buyback program to 2.5B . All positive news from SNDK, and if the shares are not taken , we will effectively have purchased the stock @ $54.14. With the company being in the "tech" space it adds diversity to the holdings. Something to keep in mind , just in case we experience a market sell off and we are left holding these positions.

Disclosure: I am long EBAY, LAZ, LVS, RIG, SNDK.

Additional disclosure: stocks4income@usa.com

Stocks: EBAY, LAZ, LVS, RIG, WDC