Monday, 20 July 2015

New Purchase and Short Put - Baytex Energy

Oil continues to drop and I continue to buy.

On July 20, I initiated a position in Baytex Energy.

This company is engaged in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. Approximately 82% of Baytex's production is weighted toward crude oil and natural gas liquids. 

Number of shares purchased
100
Price per share
$14.95
Commission
$9.95
Total cost per share
$15.05
Total cost
$1,504.95
Annual dividend per share
$1.20
Initial dividend yield
8.0%
Increase in forward 12-month dividends
$120.00



My dividend income is now $9,464 per year.


At the same time, I also sold a put on BTE:

Sold 1 BTE Put Jan 15 '16 $15 Put @ 2.15 ($11.20 commission)

Days Held (sell date to expiry): 179

Net Premium: $203.80

Annualized Return = ($203.80 / ($1,500 - $203.80)) * 365/ = 32.0%

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