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Donald E. L. Johnson's avatar

My MRK puts expired worthless on Friday. Cumulative premiums collected were $1.81. Bought MRK for $113.41 and sold MRK 6.30.23 $116 strike covered calls for $1.12. Net Debit is $113.41-1.12-1.81=$110.48. RoR is 0.99% times 15 trades a year gives a potential ARoR of about 14.42%. Dividend yield on net debit is about 2.64% if collected 4 times a year. Ex dividend is 6.14. If the stock is called before then I'll still get a 2.28% gain, or If I got that gain 25 times a year the ARoR would be about 57%.

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Donald E. L. Johnson's avatar

I might sell MRK puts on the dip. And I'm waiting to sell puts on CAT and ORCL when and if they dip.

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