I wrote a put on CVS

music selection:  “Still… You Turn Me On” — Emerson, Lake, and Palmer

weigh-in:  196.8 +0.4

CVS  Health Corporation is a vertically integrated health care company.  They have recently made vertical acquisitions that are going to allow the company to be more competitive and profitable in future.  I am taking advantage by write secured puts for income.

I sold CVS181026P00077500 for 2.45 a share.  This trade will be in force for 40 days and yields an expected 28.85% on an annualized basis.  At the same time, the trade enjoys 3.14% downside protection against a decline in share price.  If assigned, I will write covered calls for additional income while I wait to collect the underlying distribution of over 2%.

The yield curve has still not inverted.  I will be tightening stop losses when it does and adding short exposure if the 90 day treasury yield exceeds the 10 year yield.

Devour your prey raptors!

Option trading for income CVS

Never miss another opportunity to devour prey!

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