We’ve been recent buyers of Medibank following the Algo Engine buy signal at $2.80.
With the stock now trading over $3.00 we recommend investors look to add a covered call option into December at the $3.10 strike price.
The addition of the option premium combined with the September dividend is generating an annualized cash-flow of almost 12%. The strategy also allows for 10% capital growth, should the call option get exercised at expiry.
Medibank goes ex-div $0.30 on the 21st of September.