On September 11, 2019, I sold the following naked put-  PBCT NOV 15'19 15 @0.35

I keep selling puts against (high) dividend-paying stocks I already own or I would like to have. PBCT is the stock we have just recently added to our child investment portfolio, see: Latest Stock Buy for Child Investment Portfolio: PBCT

People's United Financial, Inc. (PBCT) is a bank holding company that owns People's United Bank. The bank operates 403 branches in Connecticut, southeastern New York State, Massachusetts, Vermont, Maine, and New Hampshire.

PBCT currently is trading at $15.87 and has a yearly dividend payout of $0.71 (before tax) giving a yield of 4.47%. Dividends are paid quarterly in the following months - Feb, May, Aug, and Nov. In case I will get assigned PBCT stock before options expiry this November, we will have 100 shares paying us dividends in these months. Awesome.

Got for this trade a premium of $35, but I will be obligated to buy 100 shares of PBCTif the price will drop below $15 USD per share by NOV 15, 2019. 

Break-even price: $14.65

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

Subscribe to Trading newsletter

Join trading newsletter and get notified once the newest trading article is out.
* indicates required

You can unsubscribe at any time by clicking the link in the footer of our emails. For information about our privacy practices, please visit Privacy policy