WGL will have two dividends of about .35 between now and April expiration.
Trade:
Buy WGL for 33.90 and sell the April 35 call for a net of 3270.
Yield @ 33.90 = 190/3270 = 5.8% in 181 days or 11.6% annualized.
WGL will have two dividends of about .35 between now and April expiration.
Trade:
Buy WGL for 33.90 and sell the April 35 call for a net of 3270.
Yield @ 33.90 = 190/3270 = 5.8% in 181 days or 11.6% annualized.
Yahoo Finance shows a volume of 6 calls last Friday for the April 35 2010 Calls. Last trade was $1.00.
My spreadsheet shows the cash flow or return for the unexercised and exercised cases. I believe the dividend is now $0.3675.
I show cash flow including dividends of 5.12% if not exercised, or a return of 8.36% if exercised.
WGL certainly held up well in 2008. Very low risk investment.
