Monday, February 25, 2019

Square Covered Call

My wild side is coming out.  Square is not exactly a Dividend Machine.  It does not even pay a dividend.  It has negative earnings but it has potential.   Calls are abundant and here is 19 day call that I think is worth the risk.

I bank a 2.46% yield right away from the $1.91 premium and I have the potential to book an additional 7% gain.  I also may get stuck with it should something negatively affect the stock.  Also, I may end up losing a lot of opportunity if SQ soars way above the strike price.  If  SQ is called away, my upside is limited.

I still think it is work the risk. 

M* MoneyMadam
Disclosure:  Long SQ with calls