My covered call on DIS expired in the morning over the weekend.
music selection: “Mama Told Me (Not To Come)” — Three Dog Night
weigh-in: 217.4 +0.4
I collected 2.95 in premium on the covered call plus a dollar in capital gains on the sale. I’m back for an out of the money put around 12% yield. Disney is still a great company and Jungle Book should be the next hit. I was able to sell DIS160429P00096500 for 84 cents a share. The trade will be in force 26 days and yields 12.22% annually. In addition, the trade has 3.1% downside protection against price drops.
I’ll be back Wednesday to discuss a fixed income trade.
Devour your prey raptors!
Write Put The Walt Disney Company (DIS)
Thanks for this update. What platform do you use to trade or paper trade a potential options investment? What do you recommend to someone like me that has 0 experience.
DH!
I like Interactive Brokers. Best price and best execution. They do have a 10 dollar minimum monthly commission (otherwise they charge you for data). They also have paper trading.
Your first trade should be a covered call or cash secured written put. Don’t chase yield (high premium is a proxy for high risk underlying). And ALWAYS use a limit order. Spreads can be wide.
I appreciate the info and tips!