I've been buying stocks since October 2008, and have been generally pleased with my picks and performance. But I admit that the current $6,000 paper loss on ESV has rattled me. When I bought, everything said "screaming buy". And today, I'm thinking the dividend may disappear! I still believe ESV will recover when oil prices increase and will continue holding.
On a more positive note, this morning I was looking to buy shares in an oil & gas company, but ultimately settled on selling a put option in SU.
Sold 1 SU Put Jun 19 '15 $36 Put @ 3.40 ($11.20 commission)
Days Held (sell date to expiry): 200
Net Premium: $328.80
Annualized Return = ($328.80 / ($3,600 - $328.80)) * 365/200 = 18.3%
The most likely outcomes of this trade are:
- Shares are trading above $36 at expiration. I will get to keep $328.80 in net premiums.
- SU is trading below $36 at or before expiration and shares are assigned. I will receive 100 shares of SU at a net cost of $32.71/share.