Options Trading: Sold 3 Puts AGN:AMS JUN 19'20 2.2 @0.24

Updated: 2 May, 2020 seen 50

On April 16, 2020, I sold 3 puts on AGN:AMS JUN 19'20 2.2 @0.24

AGN:AMS stands for Aegon NV which traded on Amsterdam stock exchange. 

This options trade comes as an idea to cut losses on a closed ratio put back spread on RDSA. I could roll forward that trade, but I didn't want to sit on a losing trade and hope maybe it will recover someday, and instead decided to jump on another financial instrument.

AGN currently is trading at EUR 2.21 and has a yearly dividend payout of EUR 0.30 giving a yield of 13.51%. Dividends are paid bi-annually in the following months - May and August. In case I will be assigned AGN stock before options expiry I will have 300 shares paying me dividends in these months. 

Got for this trade a premium of EUR 72 but I will be obligated to buy 300 shares of AGN if the price will drop below EUR 2.20 per share until June 19, 2020. 

Break-even price: EUR 1.96

This latest trade gives 60.17% yield annually,

In case I will be obligated to buy this stock, I already have collected premiums, and my real buying price will be EUR 1.96 or just EUR 588 for 100 shares of AGN with an annualized dividend at EUR 0.30 that's a hefty 15.30% dividend yield.



Hi! My name is Reinis Fischer (38), a proud dad and devoted husband. CEO and Founder of Terramatris crypto hedge fund, drone enthusiast, world traveler, photographer, and passionate lover of Georgian cuisine (vegetarian).

An ex-pat living in Georgia since 2011, I trade stocks, take photographs, work out at the gym, and many more. Here I write about travel, finance, and other things that might interest me.