Wednesday, August 23, 2017

Rolling a few expired calls: NVDA, SWKS


Rolling Calls Update SWKS and ARCH

I continue to work the call rollovers today.  I still needed to fill the second Skyworks (SWKS) call.  Today I took a November 17, 2017 expiration with a strike price of $115 and received $1.65 premium.  Their next ex-dividend has not yet been announced.  If they follow their typical dividend history, the next ex-dividend date should be about 11/15/2017 meaning I should also get the quarterly dividend of $.32.

The table below presents the data on this lot of SWKS.

Next I was able to sell a call on Arch Coal, symbol ARCH.   I own ARCH because of a bond default that resulted in my receiving shares and some cash for the bond.   My basis is about $90.   Trying to make lemonade out of lemons, I am working the calls to try to get back some of my money.  This is the second call I have been able to sell on ARCH.  I will receive the dividend of $.35 per share as it went ex-dividend on 8/29/2017, however, should my shares be called away before or on the call expiration date of 10/20/2017, I will not receive the next dividend.

See the table below.

I still am not happy with the call premiums I find for Apple (AAPL) so I will continue to be patient and look for the best opportunity.

Thanks for reading M* MoneyMadam
Disclosure:  Long SWKS, NVDA, AAPL, ARCH all except AAPL with calls

Original Post 8/23/2017

Four of my calls expired last week and I have been looking for new opportunities for making money by selling more calls on those stocks.

Yesterday I sold a call on Skyworks, SWKS, and today I sold a call on Nvidia, NVDA.

I like to extend the expiration dates to after the next ex-dividend date and I like to ladder the strike price.  For instance, I have an October $190 working on NVDA so if I extend the expiration to November I want more than $190 and the next strike price available is $195.   NVDA's ex-dividend date is September 17, 2017 so I should receive the dividend as well as the call premium by selecting a November expiration.  NVDA's dividend is very small but I want it anyway.

For Skyworks, I had a $105 expire and I wanted to replace that with a $110.   I also had a $115 expire and hoped to find something better than or equal to $115  in November but have not yet found a call to my liking.   Skyworks next ex-dividend date should be about Nov. 4, 2017 so if my stock is called away on expiration of the October $110 call, I will not get that next dividend on this lot.  I don't love that but I am still long on the other lot of SWKS and will look for a call with an expiration date after Nov. 4. 

The table below summarizes my progress to date.  I find no calls on ARCH and the AAPL calls that I like are not yet paying enough.

M* MoneyMadam
Long:  SWKS, NVDA, with calls and ARCH and AAPL