On 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 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.