Sold a Covered Call on RWR

Three years ago, I was bearish on REITs and started selling uncovered calls. As you might expect, I did not do so well. I wish I had stuck it out - there would have been a nice payoff.

After an optimistic round of guests on Bloomberg's morning call, the drop in oil today, and the rally we saw last week, I started thinking that everything might not be as bad as it seems. Unleveraged RIETs owning commercial property as opposed to subprime residential will probably do okay, and the hefty dividend (currently around 5%) will probably carry you through. The other thing which I have not heard mentioned as much is that, if inflation is a big concern, REITs holding physical property might not be such a bad play after all.

With this logic I bought 100 shares of RWR at $69.51 and sold the September 71 calls at $1.00. If the stock is trading much lower at expiration, I will probably roll down to the 70 calls.

At least Barron's agrees with me.