#60 Selling Naked Put: NRZ OCT 18'19 14 @0.53

Updated: 23 December, 2019 seen 31

On August 20, 2019, I sold the following naked put- NRZ OCT 18'19 14 @0.53

I keep selling puts against (high) dividend-paying stocks I already own or I would like to have. NRZ is one of the dividend stocks I have in my portfolio since 2018.

New Residential Investment Corp. (NYSE: NRZ) is a publicly-traded real estate investment trust (“REIT”) that focuses on investing in, and actively managing, investments primarily related to residential real estate.

NRZ currently is trading at $14.81 and has a yearly dividend payout of $2.00 (before tax) giving a yield of 13.5%. Dividends are paid quarterly in the following months - Jan, Apr, Jul, and Oct. In case I will be assigned NRZ stock before options expiry this October, I will have 100 shares paying me dividends in these months. Awesome.

Got for this trade a premium of $53, but I will be obligated to buy 100 shares of NRZ if the price will drop below $14 USD per share by OCT 18, 2019. 

Break-even price: $13.47

If I will get assigned NRZ I will start selling covered calls on it immediately. 


Hi! My name is Reinis Fischer (38). Dad, husband, options traderdividend income investorcrypto hedge fund manager, drone enthusiast, world traveler, photographer, and passionate lover of Georgian cuisine (vegetarian). 

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