Options Trade – Verizon Communications Inc (VZ)

I made a Covered Call trade on Verizon Inc (VZ) today – just too cheap – here is the trade:

• Bought: 1000 shares of VZ at $36.90
• Sold: Ten (10) Jan 27, 2023 Calls at $0.66
• Strike Price: $38.00
• *Premium Collected: $660.00

So, my entry price for VZ was *$36.24. If I am forced to sell the 1000 shares in January 2023 at the $38.00 strike price, my profit will be approx. $1,760.00.

VZ also pays an incredibly strong 6.91% dividend (the real reason for the trade), that I will start collecting in early January 2023 even if my shares are called away – so that would add at least another $650.00 to my profits.

*Excludes transaction costs.