Sold a Call on my MPW Shares

Last week I bought 500 shares of Medical Properties Trust Inc. (MPW) 2 separate times. Once at $12.48 and another 500 shares at $12.74. I now own 1000 shares at an average of $12.61.

I sold Calls on these shares last week bringing in a premium of $210. Doesn’t sound like a lot but it is 1.6% for the 1 week trade.  Today I sold another 10 contract Call. I sold 10 2/17/23 $13 Calls for a premium of 40¢ for a total of $400.

 

1/27/23 – Buy 1000 Shares MPW @ $12.61

2/7/23 – Sell to Open 10 MPW 2/17/23 $13.00 C @ 40¢ (+$400)

 

This stock is a high dividend stock. I do have an additional 800 shares in my non-margin account which I will keep long term for the dividend growth. The 1000 shares I’m writing about I have to sell Calls against. With these shares I hope to get assigned at my Strike Price of $13. That will give me an additional 39¢ profit on the stock sale for $390. If I don’t get assigned this time I might hold the shares for the dividend.

This Call I sold today will expire next Friday, 10 day away. With this 10 day Call I received a premium of 40¢ for $400. This is a Return on Investment (ROI) of 3.1%. Not bad for 10days. This trade fits into my 1 Week/1% strategy.

This trade gets a Risk Factor 1. This is a solid stock and because it’s a high dividend stock it isn’t very volatile. And if I don’t get assigned I can hold for the 10% dividend.

Let’s watch to see how my Slow and Steady, Steady and Slow trades work out.

 

Successful trading,

Steve

The Options Coach