On 9.27, I sold 4, 120 strike Calls with an 11.15 expiration against my J.M. Smucker Company (SJM) position for $4.80 each. SJM closed below the strike on 11.15, so I kept my shares and pocketed that nice call premium. On 11.15, I also locked in dividend rights for $1.08 per share, payable on 12.2. Today, 11.25, I sold 12.20 expiration covered calls at a 120 strike price for $1.50 each. So here’s where the SJM Covered Calls Game stands, now:
Running totals on cash generated: $644 from 3/15 calls; $1,280 from 4/19 calls; $240 from 5/17 calls; $424 from 6/3 dividend; $560 from 8/16 calls; $432 from 9/3 dividend; $776 from 8/19 calls; $1,920 from 11.15 calls; $432 from dividend (ex-div 11.15; payable 12/2); and, $600 from 12/20 calls. That’s $6,664 total since the game began on 3/6, an average of $740 per month. This is like owning a rental property and collecting rent but without the hassle and costs of mortgage payments, property tax payments, HOA payments, maintenance, and tenant issues!
Keep on Keepin’ On,
P. Gustav Mueller, author of The Present