I own quite a bit of QCOM mostly for the dividend and for the calls. I have written many posts about QCOM calls. I am an experienced seller of covered calls but here is one that really surprised me.
After hours, QCOM was trading between $61 and $64. I saw a call with a $65 strike and the call premium was $4.00.
I put in an order for today, Monday November 6 to sell this call. I actually did not think it would execute but it did. At this point (11:00 AM Eastern time) that very call is trading at $1.80.
This experience is a first for me. I rarely put in orders for the next trading day, but this time it worked out well. Instead of $1.80 I received $4.00.
Notice the call expiration is after the next ex-dividend date of November 28 and based on the trading price of $62.92, I just may keep this lot through the ex-dividend date. The table below shows the details of this trade.
The lot I used for this call, I bought a year ago September. September 2016 QCOM post I have sold several calls on this lot as I suffered through stock price declines slipping into the high $40's. I do love the dividend yield but I am willing to lose this lot should my stock be called away.
M* MoneyMadam
Disclosure: Long QCOM with Calls
