On July 1st, 2019, I made the following in the money (ITM) put sell - ET AUG 2'19 14.5 Put @0.61
This is already the thirty-third (#3d) 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.
ET currently is trading at $14.48 and has a yearly dividend payout of $1.22 giving a yield of 8.42% (before taxes). Dividends are paid quarterly in the following months - Feb, May, Aug, and Nov. These are the months I'm always worried about, in case I will be assigned ET stock before options expiry I will have 100 shares paying me dividends in lowest months of the year. Awesome.
Got for this trade a premium of $61, but I will be obligated to buy 100 shares of ET if the price will drop below $14.5 USD per share by Aug 2, 2019.
Break-even price: $13.89
This latest trade gives 46.10% yield annually
In case I will be obligated to buy this stock, I already have collected premium, and my real buying price will be $13.89 or just $1,389 for 100 shares of ET with an annualized dividend at $1.22 that's 8.78% dividend yield.
I took this trade because of following reasons - to boost my total options income in July, and in case I will get assigned, I will be able to sell covered calls, last but not least, if assigned, I hope to catch it before ex-div to have a dividend in August.