Option Trading For Income CVS

CVS Health Corporation (CVS) is a vertically integrated health care company.  They have recently made vertical acquisitions that are going to allow the company to be more competitive and profitable in the future.  I am taking advantage by writing secured puts for income.

I sold CVS181026P00077500 for 2.45 a share.  This trade will be in force for 40 days and yields an expected 28.85% on an annualized basis.  At the same time, the trade enjoys 3.14% downside protection against a decline in share price.  If assigned, I will write covered calls for additional income while I wait to collect the underlying distribution of over 2%.

The yield curve has still not inverted.  I will be tightening stop losses when it does and adding short exposure if the 90 day treasury yield exceeds the 10 year yield.

Devour your prey raptors!

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