2 August, 2021 seen 6,329Stock splits are not rare, they happen quite often. In this article, I'm going to try to shed some light on what happens to options when stock is doing a reverse split. Make sure to check out my newsletter: Covered Calls with Reinis Fischer On March 24, 2020, I bought both call and put ratio back spread options on XOP ETF. A couple of days later I was…
On April 18th, 2019, I made the following put call - Call Selling: XIN JUL 19'19 5 Put @0.2
This was the first call sell in my short options trader career, and already the tenth (#10) from total options trade. I wanted to see how does it actually works - selling premiums on stocks I already have - it works great.
XIN stands for Xinyuan Real Estate, I have this stock in my portfolio since October 2018, when bought it for at $3.79 per share.
On October 2018, I bought 144 shares of Xinyuan Real Estate (XIN ) at $3.79 per share. With its quarterly dividend payout of 0.1 dollars per share, this latest buy has a dividend yield of 10.55 % and will pay us $14.4 every quarter. Awesome!
Got for this trade a premium of $20, but I will be obligated to sell 100 shares of XIN if the price will go up to $5 USD per share by JUL 19, 2019.
Break-even price: $5,2