I have not made a covered call trade on my Kinder Morgan Inc (KMI) holdings in years – I love the company. Unfortunately, after getting put DOW Inc. last week, I don’t really want to risk taking on any more equity in my trading account, so I will need to do a covered call on an existing holding to generate income this month. Kinder is my only holding that I can truly say is overvalued, so I am risking losing my current shares with the following trade:
- Sold: Thirteen (13) May 30, 2025 Calls
- Strike Price: $28.00
- *Premium Collected: $572.00
Kinder goes ex-dividend tomorrow, so I am assuming there will be a little drop in the price. As I have stated previously, this is one of my favorite long-time holdings – and I enjoy the dividend – but according to Morningstar, KMI’s fair value is only $22.00, so I need to stick to my trading rules.
*Excludes transaction costs.
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