On April 17th, 2019, I made my second options roll forward and I made the following put sell - WPG OCT 18'19 5 Put @0.93

Just a couple of days ago I opened an original position Put Selling: WPG JUL 19'19 5 Put @0.30, but unfortunately, stock felt under the strike price and ... I could let it be assigned to me, but I decided to roll it forward and collect more premium.

First I had to sell my previous position (Loss here - $48.8) and open the new in which I collected a premium of $93. 

WPG stands for Washington Prime Group, and it has been in our dividend income portfolio since the end of 2018, see Latest Stock Buy For Child Investment Portfolio: WPG

WPG currently is trading at $4.64 and has a yearly dividend payout of $1.00 giving a yield of 21.5%. 

In case I will be assigned WPG stock before options expiry I will have 100 shares paying me dividends Awesome.

Got for this trade a premium of $93, the new break-even price: $4.07

This latest trade gives 35.94 % yield annually

In case I will be obligated to buy this stock, I already have collected premium, and my real buying price will be $4.07 or just $407 for 100 shares of PEI with an annualized dividend at $1.00  that's a very high 24.5% dividend yield.

Subscribe to Trading newsletter

Join trading newsletter and get notified once the newest trading article is out.
* indicates required

You can unsubscribe at any time by clicking the link in the footer of our emails. For information about our privacy practices, please visit Privacy policy