Underlying Security Symbol: CVX, PSX, VLO
I hate buying high and hoping the stock goes higher. But today I am doing that because the catalyst is just too strong. The catalyst in my opinion is the shortage of production capacity of oil. This is not a supply chain issue. This is a shortage of the end product. I don't like buying high, but I am although I spread it out a bit.
- Dividend Yield 3.45%
- Regular dividend increases
- A May 20 call delivers $4.10 call premium income
I filled a lot by buying 75 shares at $164.50.
I sold the May $185 call for $4.10 and I should receive the dividend of $1.42 as the call expiration is after the expected ex-dividend date of May 15, 2022.
I wanted to spread out this chunk of money I am putting into energy so I selected PSX as the new name in my portfolio. PSX is the second best deal out there for income investors.
- Dividend Yield 4.66%
- Recent dividend increase
- A May 20 call delivers $2.70 call premium income
I added 200 shares of PSX and sold a call against 100 shares. My basis is $78.98. The expected ex-dividend date is May 18, 2022 so I should be able to bank the $.92 dividend.
THE TWO DAY TRADE:
The third play I made today, trying to take advantage of weak oil prices, was to add VLO, Valero. While VLO has a good dividend yield of 4.49%, they have not raised the dividend lately. The best call I could find expired before the ex-dividend date so I would not be banking that dividend unless I still held the stock after the call expired.
However, I was compelled by a two day option. I bought VLO at $87.32 and sold an $88.00 call for $1.20. The call expires this Friday. These little calls can help over time to fill my coffers.
Just a few interesting moves in an active market.
MM MoneyMadam
Data from Schwab.com and Marketxls
1 comment:
UPDATE: This call performed as expected and was assigned. VLO has such a high P/E ratio that I am happy to use the proceeds and move into a different energy play. MM
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