Options Trade – Sabra Health Care REIT Inc (SBRA)

I made a Covered Call trade on Sabra Health Care REIT Inc (SBRA) today – more of a dividend play than options trade.

Here is the trade:

• Bought: 1000 shares of SBRA at $14.87
• Sold: Ten (10) November 19, 2021 Calls at $0.57
• Strike Price: $15.00
• *Premium Collected: $570.00

So, my entry price for SBRA was $14.30. If I am forced to sell the 1000 shares in November 2021 at the $15.00 strike price, my profit will be approx. $700.00.

SBRA also pays an incredibly strong 8.04% dividend (the real reason for the trade), that I will start collecting in November 2021 even if my shares are called away – so that would add another $300.00 to my profits.

*Excludes transaction costs.