My puts on Apple, Qualcomm, and Microsoft all expired out of the money over the weekend.
music selection: “Little Suzi” — Tesla
weigh-in: 218.2 +1.4 – doh!
I’m taking my own advice from the 24 put writing candidates series and opening a position in Eli Lilly. LLY is the tenth largest pharmaceutical company in the world. The company was the discoverer of insulin (no small contribution to medical science!) It has paid a dividend since 1885. My yield on cost if assigned would be 2.78%. Future dividend raises are likely. And there is great liquidity in the options ensuring bonus yield will be easy to come by.
This morning, I sold LLY160527P00073500 for 90 cents a share. The trade will be in force 33 days and yields 13.54% annualized, just beating my 12% requirement. The trade also enjoys 6.7% downside protection.
Devour your prey raptors!