Closing a Position [TDS]

As discussed in my post on 2024-05-30, Telephone and Data Systems, Inc. (TDS) announced that its board of directors unanimously approved the sale of UScellular’s [USM] wireless operations and approximately 30% of its spectrum assets to T-Mobile [TMUS] for $4.4 billion. TDS will be a much smaller company when the sale is finalized and in anticipation of that day, TDS also announced a massive cut to their dividend.

The dividend reduction marked the end of its short reign as a Dividend King, and it is disqualified from inclusion in the Royal Dividends Empire. Had I not had three covered calls on TDS, I would have exited the position shortly after that announcement.

I was assigned on the calls on Friday. The time has come to sell the remaining 45 shares and officially exit this position. I am placing a market order to sell 45 shares of TDS on Monday morning. With TDS having last traded at $20.52, the proceeds of the sale should be approximately $923.40. Combined with the 300 shares assigned at $20 per share, the roughly $6,923.40 in cash will be used to open a new position on Monday.

Stay tuned for my next post to learn about the new position.

I will summarize and discuss the performance of the TDS position in a separate post after the sale on Monday.

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