11 September, 2022 seen 1,533Deribit is my latest discovery from the crazy crypto world. It all started with simple buy-and-hold operations back in…
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
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.