Update on ABT Covered Call….Earnings Announcement Today….Could be opportunity to add to position

Abbott is a good covered call candidate. In our IB account we purchased 100 shares on 4/1/21 and sold the May $120 Call option. We rolled the option to May $125 (if the stock drops today we might regret the roll up!).

Our unrealized return on capital for the position is 2.4% in 18 days or 49% annualized. We picked up the $.45 dividend on April 15.

Abbott missed revenue forecast for the quarter but exceeded EPS by $.05. If the stock experiences a dip we will likely add to our position as we like the long term prospects. We also own ABT in our Schwab accounts. It is a dividend aristocrat which is hard to find “on sale”.

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