I made a new Covered Call trade on my existing Kinder Morgan Inc (KMI) shares today, based on the huge run the stock has made. KMI goes ex-dividend tomorrow, so I feel the stock is due for a pull back. Based on that, I made the following trade:
- Sold: Ten (10) June 17, 2022 Calls
- Strike Price: $19.00
- *Premium Collected: $520.00
This is one of my long-time holdings – and I love the 6.03% dividend – so I am in no rush to exit the stock – but according to Morningstar, KMI’s fair value is only $17.50, so I feel I would be cashing out in style.
*Excludes transaction costs.
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