Money and Finance
Today I'll be looking at Medtronic. Medtronic's current price is $38.70 and is a Dividend Aristocrat with 34 consectutive years of raising their dividend. The lowest of their 1, 3, 5 and 10 year dividend growth rates is 8.7% with the highest at 17.8%. The most recent payout ratio is 30.50% with a current yield of 2.50%.
If you're looking for more downside protection and therefore less of a chance of being put the shares then I like the #37 put since you get 4.59% of downside til the option could possibly be exercised and a total of 5.99% of downside before you would lose money on the move. That while still providing an adequate return for the approximate 2 month holding period.
The $39 put would be intriguing to me if I had the money to make the move. The put would currently be in the money meaning it could be exercised right away; however, you still have 2.79% of downside protection before you would lose money on the move. As long as the shares don't trade less than $37.62 if worked out for you. I think based on the return possibilities for a fairly steady stock that it would probably be the option I would look to make a move on since you would get a better dividend yield over buying outright.
I would normally try and get further downside protection but this is a shorter term option than some of the previous ones that I've looked at.
- Selling Puts For Added Income
As promised, here are my put option plays to target a specific entry price on Procter & Gamble (PG). Procter & Gamble closed trading on 4/18/12 at $66.76. It is a Dividend Aristocrat with 55 consecutive years of raising their dividend. The lowest of their...
- Selling Puts For Added Income
It's about time for another look at possible put option moves to get a better entry price or for added income. All calculations are based off of prices from March 20, 2012. Today I'll be looking at Bank of America. I still have high regard for...
- Selling Puts For Added Income
It's about time for another look at possible put option moves to get a better entry price or for added income. All calculations are based off of the close from February 28, 2012. The current price for Waste Managerment is $35.20 giving a 4.03% current...
- Selling Puts For Added Income
It seems that the market is trying to decide whether it should have a pullback or not. This doesn't make for the best time to sell puts if you're looking to just collect the premium but if you want to get the stocks at a set price it could prove...
- Selling Puts For Added Income
I wish I had more capital to put to work right now because I've found some interesting put option moves that can give some solid return on otherwise idle capital. All information is based off the closing values from February 8, 2012. The current price...
Money and Finance
Selling Puts for Added Income
Today I'll be looking at Medtronic. Medtronic's current price is $38.70 and is a Dividend Aristocrat with 34 consectutive years of raising their dividend. The lowest of their 1, 3, 5 and 10 year dividend growth rates is 8.7% with the highest at 17.8%. The most recent payout ratio is 30.50% with a current yield of 2.50%.
| Strike Price | Option Price | Cost Basis if exercised | Total Return if Expires | CAGR if Expires | YOC if exercised |
|---|---|---|---|---|---|
| $37.00 | $0.62 | $36.38 | 1.08% | 7.69% | 2.66% |
| $38.00 | $0.93 | $37.07 | 1.66% | 12.04% | 2.61% |
| $39.00 | $1.38 | $37.62 | 2.49% | 18.44% | 2.57% |
If you're looking for more downside protection and therefore less of a chance of being put the shares then I like the #37 put since you get 4.59% of downside til the option could possibly be exercised and a total of 5.99% of downside before you would lose money on the move. That while still providing an adequate return for the approximate 2 month holding period.
The $39 put would be intriguing to me if I had the money to make the move. The put would currently be in the money meaning it could be exercised right away; however, you still have 2.79% of downside protection before you would lose money on the move. As long as the shares don't trade less than $37.62 if worked out for you. I think based on the return possibilities for a fairly steady stock that it would probably be the option I would look to make a move on since you would get a better dividend yield over buying outright.
I would normally try and get further downside protection but this is a shorter term option than some of the previous ones that I've looked at.
- Selling Puts For Added Income
As promised, here are my put option plays to target a specific entry price on Procter & Gamble (PG). Procter & Gamble closed trading on 4/18/12 at $66.76. It is a Dividend Aristocrat with 55 consecutive years of raising their dividend. The lowest of their...
- Selling Puts For Added Income
It's about time for another look at possible put option moves to get a better entry price or for added income. All calculations are based off of prices from March 20, 2012. Today I'll be looking at Bank of America. I still have high regard for...
- Selling Puts For Added Income
It's about time for another look at possible put option moves to get a better entry price or for added income. All calculations are based off of the close from February 28, 2012. The current price for Waste Managerment is $35.20 giving a 4.03% current...
- Selling Puts For Added Income
It seems that the market is trying to decide whether it should have a pullback or not. This doesn't make for the best time to sell puts if you're looking to just collect the premium but if you want to get the stocks at a set price it could prove...
- Selling Puts For Added Income
I wish I had more capital to put to work right now because I've found some interesting put option moves that can give some solid return on otherwise idle capital. All information is based off the closing values from February 8, 2012. The current price...