#28 Put Sell: XIN OCT 18'19 5 Put @0.75

Updated: 23 December, 2019 seen 31

On June 11th, 2019, I made the following put sell - XIN OCT 18'19 5 Put @0.75

This was the twenty-eight (#28) 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 $4.25 and has a yearly dividend payout of $0.39  giving a yield of 9.17% (before tax). 

Got for this trade a premium of $75, but I will be obligated to buy 100 shares of XIN if the price will drop below $5 USD per share by OCT 18, 2019. 

Break-even price: $4.25

This latest trade gives 41.08% yield annually

In case I will be obligated to buy this stock, I already have collected premium, and my real buying price will be $4.25 or just $425 for 100 shares of XIN with an annualized dividend at $0.39  that's an impressive 9.17% dividend yield.