New CC in RTX (Raytheon)

This morning we initiated a new CC in RTX. Purchased 1000 shares and sold 10 Feb 26 $74.50 Call options. Net price was $72.33. In addition to capturing the call premium we are looking to capture the dividend of $.475 that goes ex-div 2/25. Stock is up $.93 since we bought the position. Max profit if the stock reaches and stays above $74.50 is $2.17 ($74.50 strike price – net price of $72.33) + dividend ($.475) = $2.645 (3.7% in 7 days). Our break even is $72.33 (net price) – $.475 (dividend) = $71.855. Our intent is to capture the dividend and exit the position next Friday.

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