SWKS and NVDA taking advantage of chip weakness

My weakness is chips; potato chips.  I also like the chip space but I hate overpaying.  While Skyworks is not exactly a dividend machine because the yield is low, it has beta (volatility) which means I can take a chance with a covered call and if my new shares are not called away by the call buyer, I am getting paid nearly 2% to wait.  And this stock has no debt.

Take a look at a transaction I made today.  I added to SWKS and immediately sold this call.

		Price on Open	Call Expiration
	swks	$86.82	6/21/2019
	Cost Basis:	Price on Option Contract Open	$86.82
	Strike Price:		$92.50
	Call Premium:		$2.20
	Dividend	Ex Div Expected mid May	$0.380
	Call Yield on Basis		2.53%
	Call + Dividend Yield on Basis		2.97%
	$ Gain if Assigned		$8.26
	Max Return  if Assigned		9.51%

I like a greater than 1% yield from the call premium and this call meets that hurdle.  Moreover, if my shares are called away, I get a total return of over 9% in a very short time period.

Now here is another call I sold today.   For the higher risk investor but in the same industry.

My kind of income investing.

M* MoneyMadam
Disclosure:  Long SWKS and NVDA  with calls