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Strategies & Market Trends : Option Strategies
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To: Thehammer who wrote (2016)12/17/2018 10:32:18 AM
From: robert b furman2 Recommendations

Recommended By
Thehammer
Truedarkblue

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HI Hammer,

This lousy market sure has swelled some fear premium into the put market.

Here's a trade I've just put on this morning:
I sold 10 $70.00 puts on XOM for $5.35. so far up $125.00

If assigned to me my adjusted price will be $64.65.

That would yield $3.28 dividend / 64.65 = 5.07% for a blue chip that is big in the Permian.

Hope it gets assigned to me but I have to wait till January 17th 2020.

In between it makes me 7.64% on my account equity for 13 months - better than a bank.

XOM's 3 year low is $72.16 , 5 year low is 66.55.

screencast.com

Since the put is 13 month's out ,If the put expires to zero - it will have capital gains tax treatment.

XOM and CVX are the two biggest drillers in the Permian and XOM has a 25 % interest in one of the new pipelines that KMI is building from The permian to the gulf of Mexico, not to mention 3 petro chemical plants in Houston's ship Channel area.

Bob
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