Assigned on BAX Covered Calls, Profit $3,325 in 82 days, 3.8% or 17% annualized.

JEFFLSMITH ~ EDIT”ASSIGNED ON BAX COVERED CALLS, PROFIT $3,325 IN 82 DAYS, 3.8% OR 17% ANNUALIZED.”

Baxter had a nice jump in stock price the last couple of days closing at over $86 yesterday. We were short Aug 28 $83 and $83.50 calls. Plans were to roll the options up and out (diagonal) today and hope the upward momentum continued. Stock goes Exdiv today with a dividend of $.245 which we intended to capture. Made a mistake not rolling up to “out of the money” strike price yesterday and lost the dividend ($367) as a result.

We may replace the position today. Baxter doesn’t have the volatility (lower return on covered calls) but it pays a solid dividend and is a good core healthcare holding.

#assigned-2, #bax, #coveredcalls-2, #bax-2