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Shares of mall retail chain Buckle

trade ex-dividend tomorrow for a $0.35 per share payout. Own the stock through the close of trading today (Wednesday), and the dividend is yours.

A buy write with options that expire in nine days offers potential for an attractive return with a quick engagement.

Buckle (BKE) – Buy Write

Buy 100 BKE

Sell to Open 1 October 21 $35.00 Call

Execute for Net Debit of $33.25 or lower

Kearney, Neb.-based Buckle (BKE) sells clothing, footwear, and accessories through a network of 451 stores in 42 states. This year, the retailer is expected to grow revenue 4% to $1.35 billion, and earnings are seen lower by 1.4% to $5.09 per share. At 6.7 times forward earnings, BKE trades at a 13% discount to its five-year average P/E of 7.7.

Buckle’s next earning report is due November 18, and there is a $0.35 per share payout to be earned if you own BKE through today’s close before the ex-dividend date on Thursday.


Here is the buy write: Buy 100 shares of BKE, and sell to open one contract of $35.00 October 21 calls for a net debit of $33.25 or lower.

This buy write provides a quick decision. If you earn the dividend on Thursday and if BKE closes above $35.00 on October 21, your shares would be sold and you’d earn $2.10 per share on $33.25 per share at risk, or 6.3%. Over an 8-day holding period, that would be an annualized return of 288%. If the stock closes at or below $35.00 at expiration, you’ll still own it at a cost basis of $32.90 per share, reflecting the dividend earned on Thursday and the premium earned today.

Options income for this trade: You earn $45 selling 1 BKE $35 October 21 call contract. Click here for updated bid-ask and return characteristics.

For two new options-selling trades on dividend-paying stocks like this one every Tuesday and Thursday, try Forbes Premium Income Report. Trades are delivered via email and text message.

NOTE: Forbes Premium Income Report is intended to provide information to interested parties. As we have no knowledge of individual circumstances, goals and/or portfolio concentration or diversification, readers are expected to complete their own due diligence before purchasing any assets or securities mentioned or recommended. We do not guarantee that investments mentioned in this newsletter will produce profits or that they will equal past performance. Although all content is derived from data believed to be reliable, accuracy cannot be guaranteed. John Dobosz and members of the staff of Forbes Premium Income Report may hold positions in some or all the assets/securities listed. Copyright 2022 by Forbes Media LLC.


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