If CAL closes above $32.50 at expiration, we’d be assigned and earn $1.75 per share on $30.75 at risk or 5.69%. Over 22 days, that would be an annualized return of 94.4%.
On the buy write, if you earn the dividend, your profit would be $1.35 per share on $40.85 per share at risk, or 3.3%. Over 24 days, the annualized return would be 50.3%.
If WMB closes above $36 on February 2, we will be assigned. On the buy write, you would earn $1.40 per share on $34.60 at risk, or 4.05%. Over a holding period of 38 days, the annualized return would be 38.9%.
On the buy write, if you earn the dividend before assignement, you would earn $1.95 per share on $36.45 per share at risk, or 5.35%. Over a 29-day holding period, the annualized return would be 67.3%.
If OEC closes above $27.50 at expiration on January 19, we would be assigned. For the buy write, you’d earn $1.50 per share on $26.00 at risk or 5.77%. Over 31 days, that would be an annualized return of 67.9%.