Microsoft, MSFT, has been stuck in the low $50's for a while. We added it to the 2016 Model Portfolio in February at $50.40. We have received two dividends so far and if we still own it on 8/16/2016, we will get another one.
We also sold two calls.
One expired in May and another is due in August. I think we will lose MSFT to the call buyer at $55 which is the strike price. Total return has been quite nice. If the call is exercised at $55, our return is 14.72%. See the table below
The 2016 portfolio owns only 100 shares of MSFT, but in my personal portfolio, we own more. Today, I will sell another call. October $60 for $.77. See the table below to see how the math works on this call.
Disclosure: Long MSFT with multiple calls
Actual trade resulted in call premium of $.85