Tuesday, September 20, 2016

Cummins, Inc CMI another covered call

I love a stock like CMI, Cummins, Inc.   I have recently written about two lots of CMI.  I bought one lot in June at $105.60 and immediately sold a September $120 call that just expired.  I added another lot in September at $118.84 and sold a December $130 call that is still working.  

Today, I sold calls on the first lot.  I chose a December $130 strike and received a $1.75 premium.  The December expiration date is after the next expected ex-dividend date.  The data are presented below.

CMI, good income investing.

Disclosure:  Long CMI with laddered calls