· New break-even: $33.23 · Sell the Jun 08 (MSQFF.X) 30.00-strike OTM call option for: $0.77. This will return you +2.26% on your original $34 cost basis ( 0.77 / 34 ).
Doing this 6 times during the year will provide a return of: +13.56% (assuming writing a CC every two months, and similar volatility conditions).
NOTE: It's best to sell your call option after a market rally (the market goes up). When the underlying stock goes up, the call option premiums of the stock go up. This inflates the call option premiums, and brings in more income for you when you sell.
Check back here often to monitor possible positions as the markets change.
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Options involve risk and are not suitable for all investors. This is an informational tool only. It is not intended for trading purposes, and is not a recommendation or suggestion to buy or sell securities. Be smart, trade with caution, and consult with a broker and various sources before doing so.
