On May 15, 2019, I made the following put sell - WPG OCT 18'19 5 Put @0.7

This is already the fourteen (#14) 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.

WPG is a stock we already hold and wouldn't mind to add more in our children portfolio. 

As we already own this stock and would love to increase our share here, I love the idea that I could get it on discounted price + I can collect premium upfront. 

Got for this trade a premium of $70, but I will be obligated to buy 100 shares of WPG if the price will drop below 5 USD per share by October 18, 2019. Currently trading at $4.95

Break-even price: $4.3

This latest trade gives 31.63% yield annually. In case I will be obligated to buy this stock, I already have collected premium, and my real buying price will be $4.3 or just $430 for 100 shares of WPG, with an annualized dividend at $1.00 that's a whopping 23% yield.

Get the latest dividend & options income article in your inbox

Join more than 180 subscribers and get notified once the newest dividend income and options income article is is out. Sign up now and you will get ~ 2 e-mails per month
* indicates required

You can unsubscribe at any time by clicking the link in the footer of our emails. For information about our privacy practices, please visit Privacy policy