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