Last Monday, I wrote a covered call on my position in du Pont (DD).
music selection: “Turn Me Loose” — Loverboy
weigh-in: 213.4 +0.4 (really struggling to break the 213 barrier. Its been several weeks now.
Previously, I had written a put on du Pont at the 65 strike. That was assigned. Shares rallied with the announcement of the Dow Chemical merger but the market later cooled to the idea. Shares are trading around 61 dollars today and I have a new covered call at the 65 strike.
I sold DD160415C00065000 for 90 cents. The trade will be in force for 54 days and yields 9.36% annualized. I also recently collected 38 cents in dividend distribution for some bonus yield. This one is a little disappointing but I can live with high single digit annualized returns, especially when it breaks into double digits with dividends.
I’ll be back Wednesday with the February transparency post. I’m on track for another down month but the damage is far more limited this time. Following that are notes on follow up trades in PSEC and CHRW.
Devour your prey raptors!