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Strategies & Market Trends : Option Strategies
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To: sm1th who wrote (2050)4/22/2019 3:03:02 PM
From: robert b furman  Read Replies (1) of 2591
 
Hi Sm1th,

I trade puts a bit different than most.

At 53.32 we're at a 3, 5, 10 year low.

Maybe Amazon and Pill Pak is really hurting Walgreens.

Their brick and mortar stores are open always - amazing convenience.

This healthcare decline has really worked on WBA.

I should probably just buy some, BUT, I like to go out longer and grab more time premium.

I'm thinking Jan 17th 2020 (places income and tax time farther out) 50's. Bid /ask is $3.15 / $3.30 Sell 10 puts at $3.23. Net adjusted price = $46.77. Dividend = .44 x 4 = $1.76. Dividend yield if assigned = 3.76%. Put Premium to net purchase price = 9.2% annualized.

That's a good initial tracking entry - so I'll watch it better.

OK took another look and bid / ask was 3.20 / 3.30.

So I just got a fill on selling 15 January 17th 2020 $50.00 puts @ 3.25 net purchase price if assigned = $46.75
dividend = .44 x's 4 = $1.76 annually 1.76 / 46.75 = dividend yield of 3.76%. Put premium to net purchase price is 3.25 / 46.75 = 6.95187 / .75 (9 months out) = 9.30 % annualized.

That's an outcome on either side, I'm comfortable with.

No fear investing - that's how I like it.

Better than any bank will give me.

Probably kick myself for being too cute and just not buying the darn stock.

Thanks for making me thing about the next step!

In between I got $4800.00 in my account.

Bob
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