I did a covered call trade with Ventas Inc. (VTR) today – have traded around this underlying in the past. I would like to add a high quality Health Care REIT like Ventas Inc. (VTR) to my income portfolio, so I made the following trade:
Bought 1000 shares of VTR at $42.42
Sold: 10 April 19, 2024 Calls
Strike Price: $42.50
*Premium Collected: $1000.00
VTR is pretty close to its 52-week low, trading at over a 40% discount to VTR’s $72.00 Morningstar Fair Value estimate, providing a very comfortable Margin of Safety. VTR also goes ex-dividend next week, so I will be collecting another $450.00 in April 2024 before the call options expire.
If VTR is trading above $42.50 on April 19th, 2024, and my shares are called away – it would still be a quick *$1,530.00 profit.
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