TDS is announcing earnings tomorrow morning. Not only do I anticipate that they will announce their 50th consecutive year of dividend increases, and thus become a Dividend King, but there is also the possibility of even bigger news regarding US Cellular [USM]. It is visible in the size of the option premiums. I would like to have a bit more breathing room with this position. As a result, I have chosen to roll up and out. The details are below.
In the same, two-legged, GTC option order:
Buy to Close: (3) May 17, 2024 $22.50 Call Options [Symbol: TDS240517C22.5]
Sell to Open: (3) August 16, 2024 $25.00 Call Options [Symbol: TDS240816C25]
Limit Order Price: Credit of $0.25 per share
I was lucky enough to get a $0.25 credit from my order affecting 300 covered shares. After commissions, this resulted in a $71.92 credit and exceeds the last quarterly dividend of $63.83 on all 345 shares. That’s a nice roll credit for a 3-month extension in the expiry date and the possibility of receiving an additional $750 in capital gains should TDS climb further on any good news.