11 September, 2022 seen 1,533Deribit is my latest discovery from the crazy crypto world. It all started with simple buy-and-hold operations back in…
On June 24, 2019, I made the following put sell - XIN JAN 17'20 5 Put @1.1
This is already the thirty first (#31) 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 $4.21 and has a yearly dividend payout of $0.39 giving a yield of 9.2% (before tax).
Got for this trade a premium of $110, but I will be obligated to buy 100 shares of XIN if the price will drop below $5 USD per share by JAN 17, 2020.
- Break-even price: $3.90
This latest trade gives 37.95% yield annually
In case I will be obligated to buy this stock, I already have collected premium, and my real buying price will be $3.90 or just $390 for 100 shares of XIN with an annualized dividend at $0.39 that's an impressive 10% dividend yield.