26 August, 2021 seen 53On July 6, 2020, we bought an additional 10 shares of Pfizer (PFE) paying $34.80 per share for our Partnership Fund. …
On May 18, 2019, I bought (actually got assigned) 100 shares of Energy Transfer LP (ET) at $15.00 per share.
With its quarterly dividend payout of 0.3050 dollars per share, this latest buy has a dividend yield of 8.1% and will pay us $30.50 (before tax) every month. Awesome!
ET is paying a dividend in the following months - February, May, August, November. Most of these months are lowest for my dividend income and now having ET feels very right and good.
I first learned about ET back in April, then decided to sell options on it:
ET stands for Energy Transfer Equity, and I had not a single clue about this company until today, actually, I found this ticker on hellosuckers.net Google Spreadsheets and after a brief investigation, I decided to sell a put on this stock.
I got for this trade a premium of $35, but as the stock price dropped below 15 USD I got assigned it at the end. Put Selling: ET MAY 17'19 15 Put @0.35
Now, I immediately started selling covered call options on ET and collected already an additional premium of $14. #18 Covered Call Sell: ET MAY 31'19 15 @0.14
I like ET stock for many reasons, it has not only great dividend, but I can also sell weekly options on it.
When selling put on ET, here is what I thought:
Now, this trade actually comes out of my league, as I tend to write puts only on stocks costing ~ $6.00 per share, as $600 is the approximate budget on a monthly basis I can afford to spend with ease and no regrets on an options trade. In the case of ET, if I will be assigned 100 shares of it, it will cost me $1,500. To stay on the track here is the plan - I will sell off shares worth $900, leaving me with shares worth $600 or about 40 shares of ET, which I'm ready to hold for long and collect dividends.
I still decided to keep all 100 shares at the end and close the negative balance (I bought on margin this time) in the coming months.