I was assigned EOG and NVDA over the weekend.
music selection: “Change It” — Stevie Ray Vaughan
weigh-in: 215.0 (1.0) – progress!
EOG Resources (EOG) was assigned over the weekend at 95 dollars a share. I wrote a covered call at the same strike this morning. I sold EOG170609C00095000 for 1.70 a share. The trade will be in force for 40 days and yields 16.33% annualized. EOG is the low cost producer of shale so I expect to do well here.
Nvidia (NVDA) was also assigned over the weekend at the 108 strike. I wrote a covered call at 108 to keep the cash coming in. I sold NVDA170609C00108000 for 4.20 a share. The trade will be in force for 40 days and yields a strong 35.49% on an annualized basis. I was surprised to see the stock drop but I expect it will be back due to a strong position in the specialty chip market.
A new position for me is Micron Technology (MU). This is a maker of computer memory. I like this sector because it is highly cyclical. It takes a long lead time to build out new capacity so memory goes through boom and bust pricing cycles. It appears a new boom cycle is upon us. I sold MU170609P00028000 for 1.12 a share. The trade will be in force for 40 days and yields 36.50% annualized while enjoying 4.58% downside protection.
Finally is Archer Daniels Midland (ADM). I’ve traded in and out of this one a few times in the past. It is a big and stable mega cap with a bright future due to a rising middle class in China and India. It makes for a great and safe trade when options premiums get plump. I sold ADM170609P00045000 for 1.00 a share. The trade will be in force for 40 days and yields 20.28% annualized while enjoying 3.89% downside protection.
I’ll be back tomorrow with April Transparency.
Devour your prey raptors!