Money and Finance
Yesterday I sold another put option on Intel. I sold the $25 17 Aug 2012 put for $0.46. Less commission I received a total of $38.01 in premium for a total return of 1.52% which is annualized to 21.75%. I figured that since I want to add to my Intel position but just not quite at today's prices that this would be the best way to go about it. I get paid to wait for the stock price to come down to where I feel comfortable purchasing. Should the put option be exercised my cost basis, after subtracting out the premium received less commission, would be $24.70. With the current $0.90 annual dividend payout that's a yield of 3.64%. As you can see from my stock analysis post on Intel, that is a fair price and sits at a 18.75% discount to my calculated fair value.
Either way this option works out will be fine by me. Of course there's always the chance that the market could take a big dive from here which is honestly one reason I almost didn't sell the option. But the return if it expires and the entry if exercised was a good combination for me to go ahead and sell the put. Should the market take a big dive I just hope that it's enough of a move to get the Intel stock put to me and then low enough to go possibly add another group to my position.
- Options Update
With Intel closing on Friday at $23.13 my September 22 2012 $25 put option was exercised. You can see the details and thought process of my selling the put option here. By selling the put option I received $52.01 in premium. In order to calculate...
- Selling Puts For Added Income
This morning Archer-Daniels Midland was trading at $26.97. Since I would like to get more into the stock with it trading around a 14% discount to my calculated fair value, I figured I would check out the potential option moves to make. The fair value...
- Recent Transaction
On Tuesday, I decided to sell another put option on Intel. This time it was a $26 September 22, 2012 Put Option for $0.48. After commission I netted a $40.01 option premium. Here's how the option can play out. (1) Option expires - I received $40.01...
- Recent Transaction
This is going in the Recent Buy section even though I didn't buy anything. I sold a put contract for Intel today expiring July 20, 2012. The strike price is for $25 and I sold it for $0.53 per share or $53. By selling this put contract I was able...
- Recent Transactions
Today I sold 2 option contracts in an attempt to add some more income. The first contract that I sold was the BAC Jan 18 2014 $7 Put for $1.73. If the option gets exercised then my cost basis for this transaction will be $5.27. If the option expires then...
Money and Finance
Recent Transaction
Yesterday I sold another put option on Intel. I sold the $25 17 Aug 2012 put for $0.46. Less commission I received a total of $38.01 in premium for a total return of 1.52% which is annualized to 21.75%. I figured that since I want to add to my Intel position but just not quite at today's prices that this would be the best way to go about it. I get paid to wait for the stock price to come down to where I feel comfortable purchasing. Should the put option be exercised my cost basis, after subtracting out the premium received less commission, would be $24.70. With the current $0.90 annual dividend payout that's a yield of 3.64%. As you can see from my stock analysis post on Intel, that is a fair price and sits at a 18.75% discount to my calculated fair value.
Either way this option works out will be fine by me. Of course there's always the chance that the market could take a big dive from here which is honestly one reason I almost didn't sell the option. But the return if it expires and the entry if exercised was a good combination for me to go ahead and sell the put. Should the market take a big dive I just hope that it's enough of a move to get the Intel stock put to me and then low enough to go possibly add another group to my position.
- Options Update
With Intel closing on Friday at $23.13 my September 22 2012 $25 put option was exercised. You can see the details and thought process of my selling the put option here. By selling the put option I received $52.01 in premium. In order to calculate...
- Selling Puts For Added Income
This morning Archer-Daniels Midland was trading at $26.97. Since I would like to get more into the stock with it trading around a 14% discount to my calculated fair value, I figured I would check out the potential option moves to make. The fair value...
- Recent Transaction
On Tuesday, I decided to sell another put option on Intel. This time it was a $26 September 22, 2012 Put Option for $0.48. After commission I netted a $40.01 option premium. Here's how the option can play out. (1) Option expires - I received $40.01...
- Recent Transaction
This is going in the Recent Buy section even though I didn't buy anything. I sold a put contract for Intel today expiring July 20, 2012. The strike price is for $25 and I sold it for $0.53 per share or $53. By selling this put contract I was able...
- Recent Transactions
Today I sold 2 option contracts in an attempt to add some more income. The first contract that I sold was the BAC Jan 18 2014 $7 Put for $1.73. If the option gets exercised then my cost basis for this transaction will be $5.27. If the option expires then...