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Covered Call Michael Kors (KORS)

Shares of KORS were assigned over the weekend at 62.00.

music selection:  “Making Love Out Of Nothing At All” — Air Supply

weigh-in:  201.4 +1.0

KORS looked like it was going to expire out of the money and then fell unexpectedly on the last day of the contract, resulting in assignment.  I am writing covered calls against the position for income.  Today, I sold KORS180615C00062500 for 2.70 a share.  The trade will be in force for 40 days and yields an expected 39.74% annualized against my cost basis of 62.  If the shares are called away, I will earn an additional 50 cents a share in capital gains, resulting in an annualized return of 47.10%.

I am not making any other trades this week.  I hope to prune my exposure over the coming months now that the benchmark 10-year Treasury has passed 3%.

Devour your prey raptors!

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