28 April, 2020 seen 101On April 6, 2020, I bought 120 shares of Energy Transfer LP (ET) paying $5.495 per share. With its quarterly dividend payout of 0.3050 dollars per share, this latest buy has a dividend yield of 22.2% and will pay us $36.6 (before tax) every quarter. Awesome! As the tax for this stock is 37.5% we will get just $22.87. Still decent. I initiated this sale…
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.