#65 Call Sell: PEI SEP 20'19 5 @0.2 (Dividend Capture)

Updated: 23 December, 2019 seen 44

On August 29, 2019, I sold the following covered call -  PEI SEP 20'19 5 @0.2.  I entered this trade for a speculative reason and to learn a new technique - capturing a dividend

This was already sixty-fifth (#65) options trade 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. Also, I sell covered calls.

I have been selling puts and call on PEI stock since April 2019. So far, one of my best picks.

Got for this trade a premium of $20, but I will be obligated to sell 100 shares of PEI if the strike price will be  $5 and more per share by SEP 20, 2019

Break-even price: $5.2

Most probably I will have to sell my shares, but I managed to capture a hefty 21$ dividend (before taxes) with this trade.