Option Sell Put: CMCSA

It is not very often that I transact stock options. I have sold a handful of options in the last years only and am still quite a beginner. But once in a while, when I don’t mind potentially owning the stock if I were to be assigned a contract of it (100 shares), I don’t mind selling put options.

I sold a put option on Comcast at the $30 strike price expiring on Jul 20. For the sell, I received $51.52 (option premium minus the transaction fee).

  • If the stock ends up above $30 by expiration time, I will get to keep the money received and can move on with no more obligation on this transaction.
  • If under $30, I may be assigned to buy 100 shares of CMCSA. The price paid would then be per share: (100 x $30 + $3.95 [fee] – $51.52) / 100 ~= $29.52 / share . The stock currently trades above the $32 level. If shares I assigned to me – I don’t mind too much: payout ratio is super low which makes the dividend I would receive pretty safe while keeping the stock – selling an option call on it is also an possibility.

The transaction:

 05/24/18   Sold Short   1 CMCSA Jul 20 ’18 $30 Put(CMCSA) @ $0.56 51.52

 

Purchases: DIS, SBUX, TXN, PG, PEP, WBA and LEG

I have been adding quite a few more shares across my portfolio since my last purchases!

I added more of these stocks which are currently priced closed to their 52 weeks low (SBUX, PEP, PG) but also on other stocks which I had purchased several years ago, and where the income contribution overall was low in relation to other stocks income in my holdings. Thes stocks are DIS, SBUX, WBA and LEG. Special thanks to Bert for actually posting his own purchase of LEG stock, and making me realize how the stock was a good purchase move at the moment. I already owned a few shares of the stock, but I am happy to have added more!

Here are my new additions:

 05/24/18   Bought   8 of DIS @ $102.80 -826.35
 05/24/18   Bought   10 of SBUX @ $57.44 -578.35
 05/24/18   Bought   2 of TXN @ $110.99 -225.93

 

 05/25/18   Bought   6 of PG @ $73.88  -447.23
 05/25/18   Bought   5 of PEP @ $100.18 -504.85

 

 05/30/18   Bought   20 of WBA @ $63.00 -1,263.95

 

06/06/18   Bought   42 of LEG @ $42.36 -1,783.07

My dividend portfolio is updated with above new holdings.

Dividend Income – May 2018

At the start of every month, I post a report showing the dividends received in my accounts for the previous month. This is always very exciting to see the progress made, and really reveals the true power of compounding using the dividend growth investing strategy! This post shows the grand total but you can check my dividend income page to see the dividend paid per positions.

Dividend income received in May 2018

  • Taxable account: $649.54 – May 2017 was $501.38

This is a nice increase since last year’s May. In May, I sold my entire position in OHI in my taxable account, but still got the dividend payout since I sold after the ex-dividend date. That will lead to potentially less dividends in August but maybe all other stocks will make up for it?! To be seen…

I am very excited for my dividend income during the month of June. If all goes as expected I should be above the $1,000 for the first time ever! Stay tuned! 🙂