On June 14, 2023, I bought 1 share of Disney (NYSE: DIS) stock, paying $94.38 per share for our Partnership Fund.
We are now holding 1 share of DIS in our Partnership Fund portfolio
Using dollar-cost averaging our average cost per DIS share is $94.38
To finance this purchase I was using Disney stock itself, or more precisely I sold 1 bull put credit spread with strike on it, and from the premium received bought this share. See: Sold 1 Bull Put Credit Spread on Disney – 1.18% potential income return in 30 days
99 shares to go once we will be able to start selling covered calls and generate extra income from DIS stock.
If we had 100 shares of DIS today, we could sell July 14, 2023, covered call (30 days to expiry) with a strike price of $95, to get a $1.48 premium. In case our shares would get called away on expiry we would realize $210 in income from our total investment, that's a potential return of 2.22%
If our options would expire worthlessly, we would simply pocket $148, or about 1.56%, and start over by writing additional call options.
- In total: 3 trades since June 14, 2023
- Options premium: $110
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