Closed Covered Call on Two Harbors Investment (NYSE:TWO) with +$107 Profit (10.7% yield in 113 days / 34.56% annualized)

On September 29, 2020, our 200 shares of Two Harbors Investment (NYSE:TWO) were called away at the strike price of $5

As expected we got assigned before the ex-div date. We won’t take an extra $24, but we are quite happy with the outcome.

Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), non-agency securities, mortgage servicing rights, and other financial assets in the United States.

We have been in this trade since June 9, 2020, when we bought 200 shares at $6.37 apiece. Since then we have collected in premiums $357 (after commissions) from selling covered calls + additional $24 in dividends.

We spent $1,274 to buy 200 shares with TWO and today we sold them just for $1,000

but as we have received options premiums, we actually earned some nice $107

-$1,274+$1,000+$357+$24

We would probably keep the shares and not sell the $5 strike covered call, but as we are trading on the margin, we decided to keep safe and minimize our negative cash balance during the US Presidental elections

We might sell more covered calls on TWO in the future

  • Running Total 9 Trades since June 9, 2020

  • Options income: $357