Monday, June 6, 2016

PAYX Covered Call fulfills 2016 stock pick

Update on Paychex, symbol PAYX.  I added Paychex to my 2016 portfolio with confidence that I eventually would be able to sell a call to boost my income.  To remind you, I require a call to generate 8% or more in capital gain should the stock be called away.

Two other metrics I require are:  call premium should be at least 1% or greater of my basis and the expiration date should be out far enough that I get the dividend; provided the stock is not called away earlier than the ex-dividend date.

Today, PAYX fulfilled this final metric.  I sold a September $57.50 for $.70.  See the table below.


See the effect on the 2016 Portfolio in the table below.


Disclosure: Long all holdings