4 May, 2020 seen 38On April 17th, 2019, I made my first options roll forward and I made the following put sell - PEI JUL 19'19 6 Put @0.8…
On June 5th, 2019, I made the following put sell - PEI JAN 17'20 6 @0.75 or I roll forwarded a put sell I made in early May (#16 Put Sell: PEI JUN 21'19 7 Put @0.35)
To make this roll forward happen first I had to sell my previous position (Loss here - $29.8) and open the new in which I collected a premium of $75.
PEI stands for Pennsylvania Real Estate Investment Trust, and we already hold 100 shares of PEI in our children portfolio, the best I like about PEI, I can sell both naked puts and covered calls on it.
PEI currently is trading at $6.4 and has a yearly dividend payout of $0.84 giving a yield of13.2%. Dividends are paid quarterly in the following months - Mar, Jun, Sept, and Dec.
Got for this trade a premium of $75, but I will be obligated to buy 100 shares of PEI if the price will drop below $6 USD per share by Jan 17, 2020.
Break-even price: $5.25
This latest trade gives 19.54% yield annually
In case I will be obligated to buy this stock, I already have collected premium, and my real buying price will be $5.25 or just $525 for 100 shares of PEI with an annualized dividend at $0.84 that's a very high 16% dividend yield.