Short Cash Secured Puts

Today’s Trades: T-Bills, GOOGL, MU, MRVL, PFE

Closed out four put options for a profit buy buying them back to close:

GOOGL June 135 put @ $.09; profit 94.19%, annualized yield 6.98%

MU June 90 put @ $.11; profit 91.34%, annualized yield 9.66%

MRVL June 50 put @ $.06; profit 93.41%, annualized yield 11.07%

PFE June 25 put @ $.03; profit 97%, annualized yield 25.61%

Bought 20 ($20,000) Sept. T-Bills yield 5.38%

Bought 22 ($22,000) Oct. T-Bills yield 5.35%

Today’s Trades: BNS, PFE, Treasury Bills

Today I had some US treasury bills mature so I bought 33 more ($33,000). Expires in July and I will earn 5.4% yield. Safe and guaranteed.

I also sold put options on stocks I wouldn’t mind owning in my dividend portfolio:

  • The Bank of Nova Scotia (BNS). BNS pays a 6.74% yield and has one green rating on Seeking Alpha and is currently undervalued per FastGraphs. My June 45 put option sold for $.85 ($85), which represents a 12.1% annualized yield.
Dividend performance
Average Dividend Growth Rate:
8.95% (20yrs)
Compound Dividend Growth Rate:
8.35% (20yrs)

  • Pfizer Inc. (PFE). PFE pays 6.40% dividend yield and has 3 green ratings on Seeking Alpha. I received $1.00 ($100) for my June 25 put option, representing a 25.61% annualized yield. 
Dividend performance
Average Dividend Growth Rate:
6.31% (20yrs)
Compound Dividend Growth Rate:
5.44% (20yrs)

Today’s Trades: MU, MRVL, GOOGL

Today I sold three cash-secured puts on stocks I would love to own at the right price.

Micron Technology (MU) June 90 put @ $1.27, representing a 9.66% annualized yield. Stock recommended by a service I subscribe to, Alpha Investor.

Marvell Technology (MRVL) June 50 put @ $.91, representing a 11.07% annualized yield. Rated two green on Seeking Alpha and recommened by a service I subscribe to, Alpha Investor.

Alphabet (GOOGL)    June 135 put @ $1.55, representing a 6.98% annualized yield. Many green ratings and strong buy on Seeking Alpha. Also recommended by a service I subscribe to, Alpha Investor.

Today’s Trades: AAPL, RQI

My Apple (AAPL) April 175 short put is in the money and expires in a few days, so I rolled it out and down to a May 170 put to give AAPL more time. This resulted in a net debit to me of about $13. The new May put option gives me a 32% annualized yield. I only sell cash-secured put options on stocks I would want to own.

I added to my position in Cohen & Steers Quality Income Realty Fund (RQI). Reasons I’ve had this closed-end fund for quite awhile now:

  • Currently selling at a -5.17% discount
  • Pays me 8.87% monthly
  • Uses no return on capital (ROC)
  • Distribution very steady

Also see: Today’s Trades from 3/25/24

Today’s Trades: TSLA, ADC, GLPI

Today, 100 shares of Gaming and Leisure Properties, Inc. (GLPI) was “put” to me (assigned to me at $45) out of my April 45 short put. Current price $42.18. No worries, a stock I am glad to add to my position. Pays 7.10% dividend yield and has many green ratings from Seeking Alpha. Remember, I received $150 for selling the put option, so my current net loss on this trade is only about $132, and I got to buy a great stock at a fair price.

Added a small amount to my Tesla (TSLA) holdings at a great price. I will never bet against Elon Musk.

Added a small amount to my Agree Realty (ADC) holdings at a great price. Two green ratings from Seeking Alpha and pays 5.39% monthly dividend.

Also see: March 26, 2024

Also see: April 3, 2024

 

Today’s Trades: ADC, O

Since ex-div date is tomorrow and price has pulled back, I added a few shares of Agree Realty Corp (ADC). Pays 5.29% monthly dividend. Two green on Seeking Alpha.

Also for ADC, I sold a May 55 put for $1.35. Annualized yield 17.23%.

Also sold a May 50 put on Realty Corporation (O) for $.62. Annualized yield 8.7%.

 

Today’s Trade: AB

I’ve had my eye on Alliance Bernstein (AB) for awhile now.

7.95% yield

3 Green on Seeking Alpha

Fidelity rank 8.4 bullish

I determined that I would be willing to buy this stock at $30, so I sold two May 30-strike put options for $.35 each ($70), resulting in an 8.03% annualized yield on the $6000 that I must set aside in my account.

Open short put positions

Open Short Put Positions
 Strike Premium Current Price
GLPI April $45.00 $1.50 $45.03
22.96% annualized yield, get to buy it at $45
OXY April $55.00 $1.28 $64.55
12.68% annualized yield
ADC April $55.00 $1.22 $56.08
15.57% annualized yield
AAPL April $175.00 $2.25 $170.85
9.39% annualized yield
FDX April $230.00 $3.25 $282.57
12.28% annualized yield
AAPL May $165.00 $3.10 $170.85
10.39% annualized yield
AB May $30.00 $0.35 $33.76
8.03% annualized yield