My old put on LLY expired out of the money and I have written another

music selection:  “Heaven Knows” — The Pretty Reckless

Eli Lilly is  a dominant pharmaceutical company and a relentless dividend raiser.  It yields 2.7%.  We can do better than sub 3% with options however.  Today, I sold LLY160708P00073000 for 1.26 a share.  The trade will be in force for 39 days and yields 16.15% annualized.  The trade also enjoys 4.95% downside protection.

I also saw positions in ABBV and NVDA expire out of the money but will not be rolling those positions as they have appreciated out of range.

I’ll be back tomorrow with the purchase of an insurance company with strong underwriting in my tIRA account.

Devour your prey raptors!

Write Put Eli Lilly (LLY)

Never miss another opportunity to devour prey!

2 thoughts on “Write Put Eli Lilly (LLY)

  • June 5, 2016 at 3:45 am
    Permalink

    How do you usually determine if something is “out of range”. What valuation metric?

    Reply
    • June 5, 2016 at 12:31 pm
      Permalink

      It varies by issue. For most stocks it is price to free cash flow compared to the S&P as a whole and their industry segment. For financials like REITs banks and insurance it is Price to Book.

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.