Today I sold the May 82.5 puts on Exxon Mobil. XOM is due for a dividend increase before this expiration. If the stock were to fall to 82.5 the yield, with dividend increase, would be close to 3%. If it hits that point I'm happy to own this stock at that price, long term, buy and hold.
Back of napkin returns if XOM puts expire worthless is 4.7% return on maintenance.
I've nibbled at a few put sells including LO, FCX and MSFT. All are doing well, however, I'm well aware that a correction may/should be coming.
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