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.
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 :
(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.
Additional disclosure: email@example.com