MooreBonds
Thinks s/he gets paid by the post
O has a wide following, and is one of the REIT bellweathers. But it's been very volatile over the past few months in a relatively large price drop.
Which is always good for option premiums (since the risk-free interest rate portion of option prices aren't worth squat with near-zero interest rates)
If you hold O or (like me) sold when it ran up and were looking for a re-entry point, I just sold a Put with a 55 strike price, September expiration, at $2.50/contract.
At the current price of about $55.25 +/-, that's a 4.5% premium for a 4 month period. Annualized, it's 13.5% for locking up my money in an IRA while I wait for expiration. I'm wiling to buy the stock at the current yield, so if it's exercised, it's just a nice juicier dividend for the first 12 months time. If it expires unexercised, then I still have $5500 to play with (either writing another put on O or something else, or buying a preferred).
Which is always good for option premiums (since the risk-free interest rate portion of option prices aren't worth squat with near-zero interest rates)
If you hold O or (like me) sold when it ran up and were looking for a re-entry point, I just sold a Put with a 55 strike price, September expiration, at $2.50/contract.
At the current price of about $55.25 +/-, that's a 4.5% premium for a 4 month period. Annualized, it's 13.5% for locking up my money in an IRA while I wait for expiration. I'm wiling to buy the stock at the current yield, so if it's exercised, it's just a nice juicier dividend for the first 12 months time. If it expires unexercised, then I still have $5500 to play with (either writing another put on O or something else, or buying a preferred).
