#37 Put Sell: ET AUG 16'19 14 Put @0.33

Updated: 23 December, 2019 seen 15

On July 8th, 2019, I made the following in the money (ITM) put sell -  ET AUG 16'19 14 Put @0.33

This is already the thirty-seventh (#37) 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 $14.72 and has a yearly dividend payout of $1.22 giving a yield of 8.28% (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 $33, but I will be obligated to buy 100 shares of ET if the price will drop below $14 USD per share by Aug 2, 2019. 

Break-even price: $13.67

This latest trade gives 20.46% yield annually

In case I will be obligated to buy this stock, I already have collected premium, and my real buying price will be $13.67 or just $1,367 for 100 shares of ET with an annualized dividend at $1.22  that's 8.92% 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.