I sold a covered call on GlaxoSmithKline plc (GSK) on Monday.
music selection: “Stay” — Maurice Williams & The Zodiacs
GSK was assigned to me on a cash secured put in November. A December covered call expired worthless and I’m heading back to the trough for more income. I sold GSK160219C00043000 for 29 cents. This trade will be in force 62 days and yields 3.97% annualized. That is a nice boost to the 5.42% dividend yield (a 73% bonus.) Glaxo is a strong company that potentially has a lot of upside but my theme for the next few months is going to be defensive. I wrote this call at my entry price to maximize income and potentially raise some cash.
My next three trades are all on the Big Cheap Tech theme and are puts that are written somewhat out of the money to gain some additional defensive downside protection while maintaining a minimum 12% annualized yield.
Devour your prey raptors.