#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.