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DIVIDEND CAPTURE – TRIPLE PLAY (ETE) TRADE ENDS

Back in December 2016 I opened a triple play trade using Energy Transfer Equity, L.P. (ETE) as underlying.

I was selling cash secured puts as long as I got assigned into the stock.

After I got assigned, I kept the stock, collected nice dividend, and started selling covered calls. Today, my covered calls ended in the money and got assigned. I sold my stock.

This ends this trade and on Monday I will start the cycle again by selling new cash secured puts.

 
Here is the ETE trade review in numbers:
 

Open date Strike Option Premium Trade Status
12/2/2016 15.00 puts 0.52 rolled
12/21/2016 17.00 puts 0.21 rolled
12/28/2016 19.00 puts 0.45 assigned
01/23/2017 19.00 calls 0.35 expired
02/27/2017 19.00 calls 0.28 rolled
03/09/2017 19.00 calls 0.34 expired
03/27/2017 19.00 calls 0.26 assigned
04/07/2017     2.41  

Summary:
 

Total Premiums Received: $241.00
Dividends Received: $28.50
Total Revenue: $269.50
Total Revenue %: 14.18%
Total Revenue Annualized: 40.77%
Days In Trade: 127

 

The dividends from this trade have been reinvested using DRIP program. I bought additional 1.505 fractional shares of ETE. These shares will bear dividends and I will continue reinvesting them.

This will ensure my stake in ETE will continue slowly growing.

 

 · What’s next?

 

On Monday, I will start selling new cash secured puts (CSP) – a new triple play cycle.

I plan on selling April 28 expiration 19 strike puts on Monday. Here is what the trade order would look like:

 
STO 1 ETE Apr28 19.00 put
@ 0.36 credit limit GTC
 

The expected ex-date is May 5th, 2017 (not confirmed yet) so the shares must get assigned in April 28th in order to own the shares before the ex-date (which would be the following Friday).

If the puts won’t get assigned, I will let them expire worthless and purchase 100 shares of ETE outright on Thursday the following day.

 





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