My earlier put on DIS expired out of the money but was assigned anyway with a cost basis of 95 dollars a share.
music selection: “Mas Tequila” — Sammy Hagar
I decided on Monday to go one strike up and sell a call at the 96 strike. I was able to sell DIS160401C00096000 for 2.95 a contract. That trade will be in force for 40 days and yields 28.34% annually versus my cost basis of 95. Should the shares rally and close above 96 at expiry, I will earn an additional dollar of capital gains for a total annualized return of 37.94%. I will be happy with either outcome as I own a great company at a great price.
Futures are setting up a down day in the market today. Oil continues to languish while precious metals continue to climb.
Devour your prey raptors!