Sold 3 Covered Calls on Pennsylvania Real Estate Investment Trust (NYSE:PEI)

On May 21, 2021, we sold 3 covered calls on Pennsylvania Real Estate Investment Trust (NYSE:PEI) stock, with an expiry date in July 16 2021. For this trade, we got a small $43.8 premium (after commissions)

Pennsylvania Real Estate Investment Trust is a publicly-traded real estate investment trust that invests in shopping centers mostly in the Mid-Atlantic states.

We have been holding PEI stocks in our portfolio since late 2018 or early 2019. Back then PEI was trading around $7 per share and dropping. Today PEI is trading around $1.88 per share.

As we are holding 300 shares with PEI it was agreed to try and generate at least some income from these trades/

here is our trade setup:

  • SLD 3 PEI JUL 16 '21 2 Call Option 0.17 USD

As long as the price won’t exceed $2 per share we are safe, in case the price for PEI stock rises to $2 and above, our 300 shares will get called away at the strike price of $2