16 May, 2020 seen 27On April 27, 2020, I sold a naked put on SPCE stock with expiry in 25 days. This trade promises a potential return of 4…
On Aug 2, 2019, I sold the following naked put - PBT DEC 20'19 5 @0.4
This was already the fifty (#50) 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.
PBT stands for Permian Basin Royalty Trust Units Ben. Int and it pays a monthly dividend stock. What's nice. Current yield is about 10.56%. Despite the stock has lost more than 40% its value in the last 52 weeks, this still seems an interesting possible buy.
Got for this trade a premium of $40, but I will be obligated to buy 100 shares of PBT if the price will drop below $5 USD per share by DEC 20, 2019
Break-even price: $4.6
In case I will be obligated to buy this stock, I already have collected premium, and my real buying price will be $460 or just $460 for 100 shares of PBT