We're going to look for a strategy that can boost potential yield without taking on alot of risk.
- Stock trades and expires above 98. We get to keep $110 premium from the sale of 98 strike put. This represents about 1.12% return on risk or about 21.5% annualized.
- Stock trades below 9 at expiration. We are long 100 shares of
PEP at 98. Since we collect $110 by selling this option, this premium will go towards reducing cost by $1.10
Our new cost basis is actually 96.90
We are going to look to sell a call against the long 100 share position with a strike price above our cost.
WhenPEP pays a $0.9275 dividend, this will also go towards reducing cost basis further. After we receive the payment our new cost basis should be around $95.97
코멘트:
JUN 97.5 Put is going to expire worthless. I am looking to sell JUL expiration, ATM put to bring in additional credit.