If we earn the January 12 dividend, and then if HRL closes above $32 at expiration one week later, we will be assigned and our shares sold at $32. Counting the upcoming dividend, we would earn $1.3325 per share on $30.95 per share at risk, or 4.3%. Over a 43-day period, that would be 36.5% on an annualized basis.
On the buy write, if you earn the dividend, and then if VZ closes above $39 on January 19, you would earn $1.66 per share on $38.00 at risk, or 4.37%. Over 44 days, that would be a return of 36.2% on an annualized basis.
On the buy write, if IP closes above $37.50 at expiration on January 19, your calls would be assigned and shares sold at $37.50. This would produce a profit of $1.70 per share on $35.80 at risk, or 4.75%. Over 50 days, that would be an annualized return of 34.7%.
With today’s buy write, if AZZ closes above $50 on December 15, your calls would be assigned and you’d earn $1.30 per share on $48.70 per share at risk, or 2.67%. Over a holding period of 15 days, the annualized return would be 65%.
On the buy write, if GEN closes above $22.00 on January 19, you will be assigned and earn $1.20 per share on $20.80 per share at risk, or 5.77%. Over a 52-day holding period, the annualized return would be 40.5%.