The Wells Fargo Covered Call from 11SEP2015 expired safely out of the money.
music selection: “Bodies” — Drowning Pool
weigh-in: 218.4 (2.6) #loser
Wells Fargo & Company (WFC) continues to be a great buy. It has a buy/hold/cover place for me. My last out of the money covered call expired worthless on Friday and I’m going back to the trough for more kibble. Today’s trade is sell WFC160115C00057500 for 45 cents. There is room for about 3 dollars worth of capital appreciation before getting called away.
This trade will be open for 82 days and yields 3.48% annualized. As a bonus, the regular dividend of .375 per share should be paid well before expiry with little chance of being called away early. This adds another 2.9% to the annualized return. I hope to roll this forward again (and again) in the future. Price target for exit is 65 dollars a share which leaves lots of room for upside appreciation. Well’s commitment to buying back shares makes this a near certainty.
Devour your prey raptors!