Covered Calls on Walt Disney (DIS)
Walt Disney (DIS) has had quite a run over the past few years, and I think it might be a bit overpriced right now.
However, I still would hold this stock for the long term, because it has fantastic potential given all the amazing franchises it has purchased in recent years (Marvel, Pixar, Star Wars, Indiana Jones), so I’d only sell calls against half your position.
DIS stock trades at $81.39. The April 82 calls (April 25 weekly series) go for $2 — a nice 2.5% premium. Sell two of these for another $400 in total premium. Now you’re up to $860.