The Trade
LVS is a ticker I trade on a regular base. Over the past 5 years it was trading between $35ish and $65ish.
Current yield is 2%.
The 40ish level is a good support level.
I bought 100 shares for 40.14 and sold next week Friday's call for 49c. If I get called out, the return will be 36c + 49c = 85c/$40.14 = 0.0211 or 2.11% ROI.
If LVS does trade below $40.5, then I get to keep the 49c and sell another call. In this case the return is 49c/$40.14 = 0.122 or 1.22% ROI.
Disclosure
I have been beneficially long the shares in LVS and short the call in LVS. 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.