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!

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Write Put The Walt Disney Company (DIS)

Never miss another opportunity to devour prey!

3 thoughts on “Write Put The Walt Disney Company (DIS)

  • April 6, 2016 at 7:31 am
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    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.

    Reply
    • April 6, 2016 at 2:10 pm
      Permalink

      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.

      Reply

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