Covered Calls on IAC/InterActiveCorp (IACI)
IAC/InterActiveCorp (IACI) is Barry Diller’s conglomerate of online businesses — everything from lending to dating sites, including well-known names such as Match and Ask.com. Diller loves to buy businesses that generate huge cash flow, and that’s why I like IACI stock in general.
It’s also a premium choice for covered calls.
IACI stock is at $65, so have a look at the June $65 call, which is selling at $2.47. The 3.8% premium for a five-week-plus holding period is generous when it comes to calls. I’m usually happy if I can get 2.5%. So this covered call returns 36% annualized.
Selling two of them nets another $494. So we’ve collected $879 so far.