Tuesday, November 9, 2010


DUK, Duke Power,was called away today just before ex-Dividend, by a Call due to expire Jan.22, 2011. Even with the compressed time (and poor decision-making in my "trial period" of DITM) the return was only 4.75% annualized - still better than a year's CD or T-Bill. It is best to do the Buy/Write 1 or 2 weeks ahead of the first ex-D date, to ensure at least 1 dividend, plus Call premium ( I received 3 dividends).
TLT has slipped below my call price and bears watching, or even hedging with TBT. Down 12%, it might be a good B/W candidate, unless the dollar rebounds greatly.

No comments:

Post a Comment