#48 Put Sell: ET SEP 13'19 14.5 Put @0.66

Updated: 23 December, 2019 seen 21

On August 1st, 2019, I made the following put sell -  ET SEP  13'19 14.5 Put @0.66

This was already the forty-eight (#48) 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 $66, but I will be obligated to buy 100 shares of ET if the price will drop below $14.6 USD per share by Sep 13, 2019. 

  • Break-even price: $13.84

This latest trade gives 37.23% yield annually

In case I will be obligated to buy this stock, I already have collected premium, and my real buying price will be $13.84 or just $1,384 for 100 shares of ET with an annualized dividend at $1.22  that's 8.81% dividend yield.