11 September, 2022 seen 1,527Deribit is my latest discovery from the crazy crypto world. It all started with simple buy-and-hold operations back in…
On May 6st, 2019, I made the following put sell - XIN JUN 21'19 5 Put @0.60
This is already the twelve (#12) put sell from my short options trader career. For now, it seems I've found my way in options trading - I'm selling puts against (high) dividend paying stocks I already own or I would like to have.
XIN is a stock I already own, I'm selling calls on it and for sure I wouldn't mind having more.
XIN currently is trading at $4.49 and has a yearly dividend payout of $0.39 giving a yield of 8.6% (before tax).
Got for this trade a premium of $60, but I will be obligated to buy 100 shares of XIN if the price will drop below $5 USD per share by JUN 21, 2019.
Break-even price: $4.40
This latest trade gives 91.41 % yield annually
In case I will be obligated to buy this stock, I already have collected premium, and my real buying price will be $4.40 or just $440 for 100 shares of XIN with an annualized dividend at $0.39 that's a decent 8.8% dividend yield.