On August 1st, 2019, I made the following put sell -  ET SEP 20'19 14 Put @0.43

This was already the forty-seventh (#47) 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 $13.51 and has a yearly dividend payout of $1.22 giving a yield of 9% (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 $43, but I will be obligated to buy 100 shares of ET if the price will drop below $14 USD per share by Sep 20, 2019. 

  • Break-even price: $13.57

This latest trade gives 21.17% yield annually

In case I will be obligated to buy this stock, I already have collected premium, and my real buying price will be $13.57 or just $1,357 for 100 shares of ET with an annualized dividend at $1.22  that's 8.99% dividend yield.

 

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