Entering text into the input field will update the search result below

Call Writing Options Strategies, Cont'd

Jul. 11, 2013 2:38 PM ETEBAY, LAZ, LVS
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

l put on another covered call position today - 7/11

Bot (LAZ) @ 32.57 , Sold the Sept 32 calls for $2. If LAZ is above the 32 strike price on Sept 21st, the yield is 4.9% for holding the stock for approx. 2 months. The call premium collected is enhanced by the .25 Dividend you will also receive in August. If the stock is below $32 in Sept. you will own the shares at an effective price of $30.57 with an annual yield of 3.1% ..

Here is the commentary for the first 2 positions I am currently in, for those that may have missed them.

Bot EBAY 6/5 @ 52.15 , Sold the July 52.50 calls for $2.16.. If EBAY is above 52.50 on July 20 ( expiration day) , the yield is 4.7% for holding the stock for 6 weeks . If it is below 52.50 my yield is 3.8% for the same 6 weeks, and I own the stock at an effective price of $49.90. "


Bot (LVS) @ 52.36 Sold the AUG 52.50 calls for $2.32 ,If LVS is 52.50 or higher on Aug 17 (expiration) , yield works out to 4.5% on a holding period of 42 days , annualized yield approx. 48% or so.. ...
If not, I own for a net price of $50.02, something I would be OK with..

LVS is one that I like for long term, already own it in portfolio , shares purchased today are in addition to that :)

Hers is a chart showing the current positions. I use a 500 share purchase to illustrate the results, of course this can be done in increments of 100 share blocks.

Unless there is a reversal , it appears the (EBAY) shares should be called away next week. I''ll keep you updated.

Disclosure: I am long LAZ, EBAY, LVS.

Additional disclosure: Stocks for Income means just that at Stocks4Income.comDon’t be an “average” investor , enhance your portfolio return. E-mail us at stocks4income@usa.com

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.