Roll Forward Put Sell: PEI JUL 19'19 6 Put @0.8

Updated: 4 May, 2020 seen 38

On April 17th, 2019, I made my first options roll forward and I made the following put sell - PEI JUL 19'19 6 Put @0.8

Just a couple of days ago I opened an original position Put Selling: PEI MAY 17'19 6 Put @0.25, but unfortunately, stock felt under the strike price and ... I could let it be assigned to me, but I decided to see how does roll forward works, and it works great.

PEI stock Price

PEI stock Price

First I had to sell my previous position (Loss here - $35.8) and open the new in which I collected a premium of $80. 

PEI stands for Pennsylvania Real Estate Investment Trust, I found this stock while doing a search for a high yielding stock to have in my portfolio.

PEI currently is trading at $5.66 and has a yearly dividend payout of $0.84 giving a yield of 14.80%. Dividends are paid quarterly in the following months - Mar, Jun, Sept, and Dec.

In case I will be assigned PEI stock before options expiry I will have 100 shares paying me dividends and giving a nice boost in those months. Awesome.

Got for this trade a premium of $80, the new break-even price: $5.2

Depending on how you count - I made $44 profit from this roll forward, trade or I lost $35.8 with the first trade and made a profit of $80 with the second trade) 

Count as you like, as long as it is with a positive dollar sign I like options trading.

This latest trade gives 50.76 % yield annually

In case I will be obligated to buy this stock, I already have collected premium, and my real buying price will be $5.2 or just $520 for 100 shares of PEI with an annualized dividend at $0.84  that's a very high 16.15% dividend yield.