On November 17, 2020, I got 10 shares of Viatris (NASDAQ: VTRS) for free, after spinoff from the Pfizer (PFE) stock. With the stock trading at about $16.34 +, that sounds like $163 in free money. Awesome.
Currently, we are holding 10 shares with VTRS stock in our portfolio. I have little to no information (yet) about VTRS stock and its planned dividend payments (if), but I noticed we can sell options on VTRS, which is cool.
To test the waters I have decided to increase our total share count to 100 with VTRS in the next 3 months that would mean an average of buying 30 shares per month and sell covered calls on this stock in 2021.
If we had 100 shares of VTRS today, we could sell December 11, 2020, covered call (monthly options) with a strike price of $41, to get a $1.50 premium. In case our shares would get called away on expiry we would realize $433 income in 32 days, that's a potential return of 11.34% in 32 days or about 129.27% annualized. Now, there is a bit of euphoria in the market now (November 9, Joe Biden has won US Presidency and PFE has announced 90% effective vaccine against Covid-19) and I don't think such high rates are sustainable in a long term, but time after time they happen.
By now VTRS takes 0.55% from our US stock portfolio
Viatris is a global pharmaceutical company that believes in healthcare not as it is, but as it should be