On July 11th, 2019, I made the following in the money (ITM) put sell - ET AUG 30'19 14 Put @0.29
This is already the forty (#40) 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 $29, but I will be obligated to buy 100 shares of ET if the price will drop below $14 USD per share by Aug 30, 2019.
Break-even price: $13.71
This latest trade gives 13.87% yield annually
In case I will be obligated to buy this stock, I already have collected premium, and my real buying price will be $13.72 or just $1,372 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.