USB $47.82. Sold USB 9.2.22 (23 days) $49 (delta .22) calls for $0.30. RoR .58%. If I do the trade 16 times a year, the AROR would be about 9.2%. Since prices fluctuate, replicating the trade is impossible and the annualized ROR is a rough estimate, at best. Analysts' target prices average about $57. One Seeking Alpha author who likes that bank is waiting to buy it at $31.
USB $47.82. Sold USB 9.2.22 (23 days) $49 (delta .22) calls for $0.30. RoR .58%. If I do the trade 16 times a year, the AROR would be about 9.2%. Since prices fluctuate, replicating the trade is impossible and the annualized ROR is a rough estimate, at best. Analysts' target prices average about $57. One Seeking Alpha author who likes that bank is waiting to buy it at $31.