CMA - Covered Call - New Trade

The Trade

CMA is a ticker that I found with a search tool.

It has a wide trade range in last 5 years between 30 and 100$. 

CMA has a dividend yield of 5.59%.

Over the last 6 months it was mainly stuck between 48ish and 56ish.

CMA is trading at a major support line.

I bought 100 shares at $50.58. I sold next week Fridays (May 31) 51 Call for 55 cents. If I get called out, then I have to sell my shares at $51. In this case, I get to keep the gain of 42c a share and the 55c from the short call. 42+55 = $0.97/50.58=1.91% ROI. If I don't get called out, I get to keep the shares and the 55c. 0.55/50.58=1.08% ROI.
Until then I am sitting on my hands.

Disclosure

I have been beneficially long the shares in CMA and short the call in CMA. I wrote this article myself and it expresses my own views and opinions. I am not receiving any compensation for this. I have no business relation ship with any company whose stock is mentioned in this article.

I am not an investment advisor or professional. This article is my personal opinion and experience and is not meant to be a recommendation of the purchase or sale of a stock or option. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters.