Tuesday, May 23, 2017

JNJ -- New Dividend Play

JNJ is going ex-dividend for $0.84 on 2017-05-25. Normally, I like to see an aROI of 30% or better, but I liked the numbers on this one. If it gets exercised tomorrow night, I get to pocket $0.21 a share. Otherwise, I collect that $0.84 dividend and all of the intrinsic value on the call I'm selling. A risk I don't mind taking...

Date Description AmountROIaROIProfit
2017-05-23Buy JNJ @ $127.55-$127.55
2017-05-23Sell JNJ 5/26 2017 $127.00 Call @ $0.76$0.76
2017-05-26If assigned at expiration$127.000.16%20.03%$0.21
2017-05-23Current value$127.000.16%60.09%$0.21
2017-05-23Buy and Hold$127.560.01%--$0.01
 

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