Hard to buy anything at these levels, but one of my target Dividend stocks is at a price I can handle, so I pulled the trigger today. I had sold a Cash Secured Put last Month on Hess Midstream which expired worthless ($650.00 profit). I placed a new Covered Call trade today as follows:
- Bought: 1000 shares of HESM at $34.70
- Sold: Ten (10) Dec 20, 2024 Calls at $0.75
- Strike Price: $35.00
- *Premium Collected: $750.00
I chose the Covered Call over doing another Cash Secured Put because of the $685.00 Dividend HESM will pay in early November 2024. The stock is still showing up in my Cash Secured Put screen, so I can justify the trade – even with the market at these levels. I waited for earnings to come out yesterday before I made the trade to avoid any surprises. I would prefer to hold these shares long-term in my income portfolio, but if the stock explodes higher and I can’t roll the calls, I will still walk away with a *$1,735.00 profit.
*Excludes transaction costs.
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