On May 16, 2019, I made the following put sell - BKS JUN 21'19 5 Put @0.3
This is already the fifteen (#15) 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.
BKS stands for Barnes & Noble - a Fortune 1000 company, is the bookseller with the largest number of retail outlets in the United States and a retailer of content, digital media, and educational products. As of March 7, 2019, the company operates 627 retail stores in all 50 U.S. states.
Barnes & Noble operates mainly through its Barnes & Noble Booksellers chain of bookstores. The company's headquarters are at 122 Fifth Avenue in New York City.
The company is known for large retail outlets, many of which contain a café serving Starbucks coffee and other consumables. Most stores sell books, magazines, newspapers, DVDs, graphic novels, gifts, games, toys, music, and Nook e‑readers and tablets.
Got for this trade a premium of $30, but I will be obligated to buy 100 shares of BKS if the price will drop below 5 USD per share by June 21, 2019. Currently trading at $5.12
Break-even price: $4.7
This latest trade gives 55.97% yield annually. In case I will be obligated to buy this stock, I already have collected premium, and my real buying price will be $4.7 or just $470 for 100 shares of BKS, with an annualized dividend at $0,6 that's a whopping 13.95% yield.
N.B. A dividend cut is very possible for BKS