#62 Put Sell: PEI APR 17'20 3 @0.3

Updated: 23 December, 2019 seen 22

On August 22, 2019, I made the following out of the money (OTM) put sell -  PEI APR 17'20 3 @0.3

This was already the sixty-second (#62) 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.

PEI is a stock we have in our child's stock portfolio. 

PEI currently is trading at $5.41 and has a yearly dividend payout of $0.84  giving a yield of 15.52%. Dividends are paid quarterly in the following months - Mar, Jun, Sept, and Dec. In case I will be assigned PEI stock before options expiry I will have 100 shares paying me dividends and giving a nice boost in those months. Awesome.

Got for this trade a premium of $30, but I will be obligated to buy 100 shares of PEI if the price will drop below 3 USD per share by APR 17 2020

Break-even price: $2.7

This trade gives 14% yield annually

In case I will be obligated to buy this stock, I already have collected premium, and my real buying price will be $2.7 or just $270 for 100 shares of PEI with an annualized dividend at $0.84  that's a very high 31.11% dividend yield.


Hi! My name is Reinis Fischer (38), a proud dad and devoted husband. CEO and Founder of Terramatris crypto hedge fund, drone enthusiast, world traveler, photographer, and passionate lover of Georgian cuisine (vegetarian).

An ex-pat living in Georgia since 2011, I trade stocks, take photographs, work out at the gym, and many more. Here I write about travel, finance, and other things that might interest me.