WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 158.03

+5.2%

Nov 3 3:59 PM EST

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To: MorganBucks who wrote (60271)	5/17/2016 11:50:09 AM
From: Art Bechhoefer	of 60323

As I noted previously, the dividend yield at the current price of WDC is surely tempting, especially if they can generate enough cash to continue paying it. I allowed about one-third of my SNDK holdings to convert to cash plus WDC stock, and despite the hardy dividend, I'm not sure I really want to acquire more, even at these prices. But I haven't made a final decision yet. What also intrigues me is the idea of selling some covered calls expiring next January or later, at a strike price somewhat above the present price, possibly around $45. This would be a conservative strategy, designed to complement holding shares that carry a fair amount of risk, owing to the huge debt obligations in front of the dividends. If the shares failed to reach the striking price before expiration, then at least some profit would be made on the declining premium. Art

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