Actual Covered Call Trade

Just returned from an overseas trip for these past four weeks; reason for my absence. Hopefully I can post weekly for the next few months.

Today I will post an actual recent Covered Call Option trade I executed to give you an idea of the process, type of security and my reasoning behind the trade.

April 13, 2016 I entered a Sell to Open Call on Pilgrim's Pride (PPC) at $28 Jun 17, 2016 (1 contract) @ 0.46

Because I sold the contract I received $46 (premium) minus commission for the trade; I agree to sell my 100 shares of PPC if the price by June 17 reaches $28 or more. If the stock price is less than $28 by expiration date; I will keep the premium and sell another option Call after the 17th of Jun for another two month period..

The traded is considered a "covered call" , as I already own 100 shares of this security and my purpose is to generate more income every several months in addition to any dividends that the company may pay.

My cost basis is $25.60 therefore if the stock is "called away" I will make a profit in the sale of the stock, plus any option premiums I might have received since my original purchase date.

If you have any questions, feel free to ask.

Daniel F. Iuculano, AAMS CMFC

Accredited Asset Management Specialist

Chartered Mutual Fund Counselor