I was able to get a few pennies out of the market on a CVX covered call today.

music selection: “Tell Me What You Want” — Zebra

weigh-in: 226.8 (0.4) #loser

There wasn’t any liquidity in the 4 to 6 week range I usually prey to stalk prey in.  Hunting was a little better at the 20NOV15 expiry (82 days out).  I was assigned at 94 and sold the 95 strike making way for a little bit of capital appreciation.  Pricing was 0.29.  On my cost basis of 94, that comes out to an annualized 1.37%.  Doesn’t seem like much but you have to remember the current yield of CVX is under 6%.  It’s a big boost over just holding long term!

If called away, there will be bonus capital appreciation of about 1% or 4.7% annualized.  No one ever went broke collecting bonuses like those.  Chevron should also pay 1.07 (or more) in dividends in November which we stand a good chance of collecting.  That would be another 5% annualized or so in yield.  Yummy.

Time will tell how well oil and gas hold up between now and year end.

Devour your prey raptors!

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Sold Covered Call CVX

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4 thoughts on “Sold Covered Call CVX

  • September 1, 2015 at 5:49 pm
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    Options is definitely something I should look into. Do you have any recommendation on books to read?

    Reply
  • September 2, 2015 at 1:09 pm
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    I keep my investing simple buy and hold dividend stocks, and index funds. IF your getting luck with calls and puts, keep on trucking. Hope your September brings you much dividends.

    Reply

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