Number of shares purchased
Price per share
Total cost per share
Annual dividend per share
Initial dividend yield
Increase in forward 12-month dividends
Because of low oil prices, Baytex Energy recently eliminated its dividend. This has reduced my yearly dividends, which now stand at $9,159.
On September 10, I sold a put in OHI. The trade:
Sold 1 OHI Put Mar 18 '16 $35 Put @ 4.60 ($11.20 commission + $0.01 SEC Fee)
Days Held (sell date to expiry): 190
Net Premium: $448.79
Annualized Return = ($448.78 / ($3,500 - $448.79)) * 365/190 = 28.3%
The most likely outcomes of this trade are:
1. Shares are trading above $35.00 at expiration. I will get to keep $448.79 in net premiums.
2. OHI is trading below $35.00 at or before expiration and shares are assigned. I will receive 100 shares of OHI at a net cost of $30.51/share.