Micron Technology (MU)

[JLS]

MU Covered Call trade:

I do CCs often as they bring in extra gains at low risk. This is my way of paying myself dividends as I own a stock.

The main risk is that the shares get assigned. That’s not a problem -- it’s almost certain I’ll get to buy the shares back at a lower price.

I don't think MU trades above the fork's upper tine. If it gets there very soon it will likely reverse. I also don’t think the recent rate of price increase from 28 to 37 is sustainable.

Therefore, I sold Oct 6 ’17 $38 Calls against all my shares. If MU follows my expected rate of rise, it will be at $38.40 by Oct 6.

Selling those Calls yields almost 1.5% return in a little over a week. Doing that over and over yields a really good income over a period of a year.