June 01

Gilead Sciences Covered Call

I purchased shares of Gilead Sciences and sold OTM Jul-16 $67.50 calls for $0.91. With the $0.71 dividend included, the static price return will be 19.7%.

June 02

United States Steel Naked Put

I sold Jun-16 $23.00 puts for $0.39 which sets up a maximum potential trade profit of 1.6% or 36.8% annualized.

June 03

Abbott Laboratories Covered Call

Shares of Abbott Laboratories passed one of my conservative and reliable screeners so I bought shares at $109.50 and sold OTM Jul-16 $115.00 calls for $0.92. As the call expiry date falls after the ex-dividend date, I will collect an expected dividend of $0.45/share setting up a potential trade static-price annualized return of 10.1% and an “If Assigned” annualized return of 53%.