Your numbers are flawed. The January 2025 bids are in the 16.80 range. This premium puts you in at 30k. The dividends over the next two years (3.5%) grabs you another $23k, for a total before expiration of 53k. If the option is exercised at strike price it will cost you 39k, a push at best based on your numbers. If you are selling January 2025s at $9, I'll take everything you got.Been with the company 15 years and have 1800 shares. Seems like a fair trade off I get 9 dollars a share today $16,200 for holding the shares for 2 years. Plus pick up the dividend another $23,328 total of $39,528. Just for holding the shares I'm I missing somthing?
You must of brought a lot of shares in 2008 at 40 bucksBeen with the company 15 years and have 1800 shares. Seems like a fair trade off I get 9 dollars a share today $16,200 for holding the shares for 2 years. Plus pick up the dividend another $23,328 total of $39,528. Just for holding the shares I'm I missing somthing?
the stock price is at 185.60 if a sell a call with a strike price of 210 how do I lose money?Your numbers are flawed. The January 2025 bids are in the 16.80 range. This premium puts you in at 30k. The dividends over the next two years (3.5%) grabs you another $23k, for a total before expiration of 53k. If the option is exercised at strike price it will cost you 39k, a push at best based on your numbers. If you are selling January 2025s at $9, I'll take everything you got.The
No just $200 to $ 300 a week with dividends reinvented.You must of brought a lot of shares in 2008 at 40 bucks
the stock price is at 185.60 if a sell a call with a strike price of 210 how do I lose money?
Knows what?
Is it a 2024 or 2025 call option? Your story paints two pictures.the stock price is at 185.60 if a sell a call with a strike price of 210 how do I lose money?
I was looking at the 2024 option. Which is a year not two years. Both seem ok for selling the call maybe half in each option ? Any thoughts?Is it a 2024 or 2025 call option? Your story paints two pictures.
Pick your investments wisely
He knows what to doKnows what?
Selling a covered call seem like a winning strategy? Ya or nay?Seem UPS stock will be limited by the high dividends ie cash going out limits stock price going up!
So you see that your dividends will be half of your projection, right? A 4% premium on a 12% move for that duration is pretty typical, nothing special. If you believe there will be contract trouble, then your move looks a little better. What you do with the premium will dictate the value of the move. You should hedge with some late summer call options that are in the 2% range. Looks like $200s are in that price range.I was looking at the 2024 option. Which is a year not two years. Both seem ok for selling the call maybe half in each option ? Any thoughts?
Best not to ask that question.Knows what?
UPS announced some aggressive stock buyback plans. This will drive the price up. How much??Seem UPS stock will be limited by the high dividends ie cash going out limits stock price going up!
Be sure you understand the leverage. Do you have A shares or B shares?So you see that your dividends will be half of your projection, right? A 4% premium on a 12% move for that duration is pretty typical, nothing special. If you believe there will be contract trouble, then your move looks a little better. What you do with the premium will dictate the value of the move. You should hedge with some late summer call options that are in the 2% range. Looks like $200s are in that price
UPS announced some aggressive stock buyback plans. This will drive the price up. How much??
I don't believe the MOD would be able to sell a covered call with B shares. I'm assuming he has converted them and now holds them in a brokerage account.Be sure you understand the leverage. Do you have A shares or B shares?