For the buy write today, if DK closes above $27.50 at expiration, you would be assigned and your shares sold at $27.50, earning you $0.80 per share on $26.70 per share at risk, or 3%. On an annualized basis, that would be 64.3%.
On the buy write, if you earn a $0.29 dividend at the end of February, and if Corning closes above $33 at expiration on March 15, you would earn $1.14 per share on $32.15 per share at risk, or 3.55%. Over 45 days, that would be an annualized return of 28.8%.
If UTZ closes at or above $17.50 on February 16, we would be assigned. On the buy write, you’d earn $1.10 per share on $16.40 per share at risk, or 6.7%. Over a holding period of 22 days, that would be an annualized return of 111.3%.
If FLS closes above $41 at expiration, we will be assigned and your FLS shares will be sold at $41. On the buy write, your profit would be $1.35 per share on $39.65 per share at risk, or 3.4%. Over 22 days, the annualized return would be 56.9%.