| | | Here's one that worked strange.
I just sold 5 January 20, 2022 $90.00 CVX puts for $27.45. I'm hoping they get assigned to me. Net purchase price will be 62.55. It just popped $13,254.00 into my account for 15 months. Of course it is $20.00 in the money. CVX is the piggy bank of the oil supers and just landed a stock only great buy for Noble. CVX today, just before a small price decline from earlier this day, announced that they will reduce Nobles head count by 25 % . News of job cuts usually boosts a company's stock price, instead they dropped further in price?
Dividend yield is $5.16 / $62.55 = 8.25%. Heck if they cut the dividend by 50% (not expected to happen) it would still be 4.12% (deal for a great balance sheet).
So before I get the confirmation the bid/ask was $27.00 to $27.90, which filled quickly at $27.45. Ten minutes before that I had a sell in at $27.50 when the bid /ask was $27.00 to $28.00 and it sat there., cancelled the order and the ask dropped 10 cents.
After I get the confirmation, the bid /ask bumps up to $27.40 to $29.90? Wider spread and much higher bid/ask median price? Now settling at $27.25 to $29.90
The wild swings of far out puts that are illiquid. I'll watch this one for 15 months. and gladly take the assignment of the stock with a big fat juicy dividend,and I'm betting it is still there!
So a $45,000 purchase if assigned and $13,250 in my account for 15 months, hoping I get a $2,580 dollar dividend raise in early 2022.
Bob |
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