#66 Selling Covered Call: WPG SEP 20'19 2.5 @0.85 (Dividend Capture)

Updated: 23 December, 2019 seen 31

On August 30, 2019, I sold the following covered call -  WPG SEP 20'19 2.5 @0.85. I entered this trade for a speculative reason and to learn a new technique - capturing a dividend. This was my second attempt capturing dividend from WPG (spoiler, I didn't get dividend not first nor this time), see: #63 Covered Call Sell: WPG SEP 20'19 2.5 @0.9 (Dividend Capture)

As we have been holding WPG in our child's investment portfolio, I keep an eye on developments with this stock, In short the stock has lost in value about 50% since we first bought it at the end of 2018, but has kept a stable dividend, despite the dividend yield is already close to 30%

I decided to perform a little experiment and see, could I capture dividend using call options.

Unfortunately I was late and sold this call on ex-div date

Anyhow, I got for this trade a premium of $85, but I will be obligated to sell 100 shares of WPG if the strike price will be above  $2.5 per share by Sep 20, 2019. Now as WPG is currently trading around $3.30 - $3.80, there is a more than a huge chance that I will have to sell at $2.5.

After I sold this naked call, I immediately bought 100 shares of WPG, again I tried to lower the share price by setting limit price $3.10, $3.15 but at the end bought at $3.2

I might return to capturing the dividend for WPG in December. Not sure yet, but could try to sell 10 covered calls. 

With the price $3.4 per share 10 lots of covered call would cost $3,400, a $0.25 dividend per share. And here you go a potential way to capture $250.


Hi! My name is Reinis Fischer (38), a proud dad and devoted husband. CEO and Founder of Terramatris crypto hedge fund, drone enthusiast, world traveler, photographer, and passionate lover of Georgian cuisine (vegetarian).

An ex-pat living in Georgia since 2011, I trade stocks, take photographs, work out at the gym, and many more. Here I write about travel, finance, and other things that might interest me.