potential good covered call strategy worth looking into. numbers based on yesterday's closing prices. the percentage calculated for potential gains are not annualized. someone please tell me why this would not be a good thing. i'm looking for solid and safe returns. i'm happy with 10-20%..hell, i'm ecstatic. if i miss the upside, i don't care, i'll find some other company to this strategy on.
i've worked out some numbers on MO. RJR has similar returns. i'll look at others.
MO
price 25.75
dividend yield of 7.6%
minimal downside, hell the chart even looks pretty good to me,,,looks to be at an inflection point.
what else they going to do to the tobacco company, make the ceo have a monthly vacation with REALMAN? that'd be a picnic for those guys.
september 25 bid 1 15/16, if it gets called, you make 4.6%, if not, just sell more calls.
september 27.5 bid 15/16, if it gets called, you make 10.4%, if not, you get to keep 3.7%.
december 25 bid 3, if it gets called, you make 8.7%, if not, sell more calls.
december 27.5 bid 2 1/16, if it gets called, say hello to 14.8%, if not, you have 8%.
december 30 bid 1 3/8,,,that gets you 5.3% if not called and 19% if called. |
