#24 Put Sell: NRZ JUN 21'19 16 Put @0.32

Updated: 23 December, 2019 seen 41

On June 5, 2019, I made following put sell - NRZ JUN 21'19 16 Put @0.32

I keep selling puts against (high) dividend paying stocks I already own or I would like to have. NRZ is one of the dividend stocks I have in my portfolio since 2018 (Latest Stock Buy: NRZ)

New Residential Investment Corp. (NYSE: NRZ) is a publicly traded real estate investment trust (“REIT”) that focuses on investing in, and actively managing, investments primarily related to residential real estate.

NRZ currently is trading at $15.69 and has a yearly dividend payout of $2.00 (before tax) giving a yield of 12.74%. Dividends are paid quarterly in the following months - Jan, Apr, Jul, and Oct. In case I will be assigned NRZ stock before options expiry this June, I will have 100 shares paying me dividends in these months. Awesome.

Got for this trade a premium of $32, but I will be obligated to buy 100 shares of NRZ if the price will drop below $16 USD per share by June 21, 2019. 

Break-even price: $15.68

In fact, I'm looking to get assigned this stock before dividend ex-date to collect dividend this July + if I will get assigned NRZ I will start selling covered calls on it immediately.