#64 ET APR 17'20 13 Put Sell @1.32 (Roll Forward)

Updated: 23 December, 2019 seen 17

On August 23, 2019, I made the following put sell - ET APR 17'20 13 Put Sell @1.32 - actually I rolled forwarded a trade I originally opened at the start of August and which approached to the expiration in the money zone.

Not willing to be assigned yet - I roll forwarded this trade to April 2020 and lowered the strike price from $14 per share to $13 per share.

The best I got paid for that. That's what I really like when trading options, in most cases you can adjust your trades. 

This was already the sixty-fourth (#64) 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 $13.18 and has a yearly dividend payout of $1.22 giving a yield of 9.25% (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 $132 but I will be obligated to buy 100 shares of ET if the price will drop below $13 USD per share by APR 17, 2020

Break-even price: $11.68

This latest trade gives 15.29% yield annually

In case I will be obligated to buy this stock, I already have collected premium, and my real buying price will be $11.68 or just $1,168 for 100 shares of ET with an annualized dividend at $1.22  that's 10.44% dividend yield.