On Monday, I wrote a covered call on GlaxoSmithKline plc (GSK).
music selection: “The Promise” — When In Rome
Shares were assigned at forty three dollars on 20NOV2105. I have a dividend yield of 5.42% on cost basis and expect dividend growth and capital gains from this one going forward if I can hold on to it. Calls are being written about 5% out of the money for some bonus yield while I wait.
I sold one contract of GSK151218C00044000 for six cents. This trade will be in force 26 days and yields 1.96% annualized. About what a lot of DGI investors are accepting in total right now. I get that as pure bonus yield. If called at 44, there will be an additional dollar of capital gains, yielding an additional 32% annualized. Can’t beat that with a stick.
Don’t forget to check the new Open Positions tab when you want to see what the Lizard King has cooking.
Devour your prey raptors!