#12 Put Sell: XIN JUN 21'19 5 Put @0.60

Updated: 23 December, 2019 seen 32

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.