If SCS closes above $12.50 at expiration on March 15, these calls would be assigned and our SCS stock would be sold at $12.50, producing a gain of $0.45 per share on $12.05 per share at risk, or 3.73%. Over a 36-day period, the annualized return would be 37.9%.
If BOWL closes above $12.50 on March 15, our shares will be sold at $12.50, and we would earn a total return of $0.855 per share, including the dividend, on $11.70 per share at risk, or 7.3%. Over a 38-day holding period, the annualized return would be 70.2%.
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%.