#31 Put Sell: XIN JAN 17'20 5 Put @1.1

Updated: 23 December, 2019 seen 26

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.