Follow Up on STE Covered Call Strategy, Stock Price Run Up

STE stock has had a quick run up making our Oct 16 $170 Call deep “in the money” (reflected in blue line). For most of the time we have had the strategy in place the covered call strategy was outperforming just owning the stock (black line versus blue line). That changed this week making stock ownership alone more profitable. With the surprising run up we will have to increase our investment in the position to “roll up” the $170 Call to $190 if we wish to maintain the position.

Over 129 days the position has generated profits of $5,023, ROI of 16.3% or 46% annualized very respectable considering the conservative nature of the company.

We will likely roll up the call and maintain the strategy. We have collected two dividends during the holding period.

STE Covered Call Profit of $4,170 After 112 Days, +13.5% or 44% Annualized

STE is likely a stock you have never heard of…..but it has been a good stock for covered call writing. So far the position has generated $4,170 in profit. Not as sexy as AMAZ or FB but profit is profit. Company pays a dividend yielding about 1%. The position has earned a profit on both the stock and the options, a hard combination to find.