Sold 7 January 2017 Call Contracts (77.50 Strike) against my Gilead Sciences (GILD) holdings:
*Premium Collected: $770.00
With valuations hitting record levels – I felt I needed to either lighten my equity holdings or increase my income – this trade accomplishes both these goals.
If Gilead rises above $77.50 per share – I will be forced to sell my shares at that strike price – but I keep the $770.00 premium regardless – my hope is that Gilead keeps rising slowly so I can sell calls each Month but keep the shares.
Ticker | Current Price | Fair Value | Margin of Safety | Yield % |
GILD | $75.07 | 98 | $22.93 | 2.48% |
*Excludes transaction costs.
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