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Strategies & Market Trends : Option Strategies -- Ignore unavailable to you. Want to Upgrade?

To: chris714 who wrote (1935)	5/11/2018 4:40:40 PM
From: robert b furman	Read Replies (1) \| Respond to of 2591

Hi Chris, This morning I sold 20 Jun 21 2019 35's for $5.00. If put to me my net cost will be 30.00 yielding $2.04 / $30.00 yielding 6.8 %. If it does not get put to me the premium to net purchase price will yield 5.00 / 30.00 = 16.67% for the next year (I cheated a bit by saying the next expiration is june when there is really a week left in the Mays - so call 16 % ish. Better than any bank and the $10,000 is in my account. Note - If this expires to zero - the gain will be treated as a capital gain - I sold it in May and it expires 13 months from now. I just love capital gains tax rates! I think this is a great bargain for T anywhere in here. If you pay too much hold it a year and get $2.00 in dividends. Hold it for 15 years and you have your money back assuming no dividend increases. and the rest is for your inheritance. Not a bad long term buy and hold!! When I went to GMI (25 years old), I had the pleasure of visiting my friends home in Shaker Heights. He was the youngest son of a big family , as his parents were elderly. They were so classy and secure in a beautifully large house in this knock out affluent neighborhood. His father had spent his entire career working for AT&T. Left me with a desire to be retired and secure like them. I'm giving it the Fowler try! Bob