Put Selling: T Jul 19'19 29 Put @0.69

Updated: 23 December, 2019 seen 64
option trading put selling T Trading

On March 29th, 2019 I made my second options trade. This time I decided to experiment with T stock and write following put sell - T Jul 19'19 29 Put @0.69

T stands for AT&T, and is one of the rare Blue Chips I can afford and wouldn't mind to have in my portfolio.

Now, I entered this trade just for pure speculation to collect premium (generate income), but in case I will be obligated I will be happy to buy out this stock

Got for this trade a premium of $69, but I will be obligated to buy 100 shares of T if the price will drop below 29 USD per share. Currently trading at $31.95.

Luckily this trade is with shorter expiration than my first trade with FTR (My First Option Trade: FTR Aug16'19 2 Put @0.45)

Break-even price $28.31

If the stock drops below $29 per share I will have to buy 100 shares of T, paying in total $2,900. Good news - T has a track of dividend growth for the last 34 years, currently, it has a 6.38% div yield and pay's 0.51$ every quarter. In case I will have to take this stock, my total dividend income will have a nice TTM + $204

Your thoughts?

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