Jun 21 (edited) • Monthly passive income
ARE Alexandria Real Estate (two potential opportunities).
I am posting it in MPI category, but it might be a long-term hold as well.
- MPI: ARE pays $1.32 in divi with ex-date 6/30. It reports 7/21. ARE is trading around 71.5 and one month out (07/18) slightly ITM $70 calls go for about 1.5-1.6. Since call premium (as of today) is higher than the divi, it is unlikely to be assigned, IF (big if) stock does not drop before 6/30. I am fine to be assigned and keep the premium as well as get the divi and hold over ER.
- Why I consider holding. There are obvious reasons why this REIT fell from $200+ to below $70. However, considering that the worst is likely behind, debt is manageable, and Price / Book Value becomes attractive, I am willing to take the risk and hold it for some time collecting 7.4% divi + covered call premiums.
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ARE Alexandria Real Estate (two potential opportunities).
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