I've added another position to the call writing portfolio - (NASDAQ:NUAN) - Nuance Communications. Bought 1000 shs @ 18.60 and sold the Nov 19 calls @ .80..
NUAN has drifted down in the recent market weakness but appears to have good support in the 18 area.. Carl Icahn has a position in the stock and I believe that will create a floor in the price right around these levels..
If the stock is Called away in November it will produce a gain of 6.4% for a holding period of approx. 2 months.. Conversely if we still own the stock after the November expiration date it provides a yield of 4.2% and we effectively will own the stock @ $17.80 ... I like the risk reward in this stock as I believe it may also provide LT holders with gains in the long run ..
With this new addition , we have taken in $8532 in premiums and Gains since June 5th. Projecting the same rate of appreciation, the portfolio is on track to show a healthy profit on the $100,000 of over 20%.
The spreadsheet below indicates the holdings in the portfolio .
Disclosure: I am long NUAN.
Additional disclosure: Stocks for Income means just that at Stocks4Income.comI am long numerous equity positions ( full list can be seen here on this blog) I am short Gold Via DZZ