This morning we are buying BP, it’s 13.50% off it’s yearly high. It pays a 6% dividend, so not much growth needed for a double digit return. Yes, some say the economy is slowing but we think the China and Mexico trade issues will resolve themselves. Oil will go back up in price, which is good for BP. So we are selling the June 14, $42 covered call today. This trade has a potential 2.3% return, if called away. Not bad for an 11 day trade, in line with our “a little bit more” strategy.
All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections. Invest with an awareness of your skills, experience and risk tolerance. Options are not suitable for all investors and people can and do lose money.