UPDATE: Apr 28, 2017
The stock ended trading day today below $19.00 a share ($18.66 to be exact) making my puts ending in the money (ITM). Tomorrow I will be an owner of 100 shares of ETE.
Now, I will start selling covered calls again as long as I get assigned and sell the stock.
UPDATE: Apr 27, 2017
Tomorrow is expiration day for this trade. The stock (ETE) is hoovering around $19.00 a share (yesterday, it was at around $19.50 and as of now it is at $18.90 +/-).
If the stock stays above $19.00 a share, the put options will expire worthless and we will wait for ex-dividend date announcement (again, the expectation based on the previous season is May 5th to be the ex-date). If so, we will be buying 100 shares out right on Thursday May 4th. If the ex-date will be after May 5th (Friday), let’s say Monday, May 8th, I may attempt to sell new puts for Friday, May 8th expiration. otherwise, again, we will purchase shares outright.
If the stock ends below $19.00 a share we will get assigned and buy 100 shares of ETE tomorrow.
ORIGINAL TRADE: Apr 10, 2017
I am selling a put option with April 28 expiration to collect premium and hopefully get assigned to the stock. If assigned, I will keep the stock, collect the dividend, and sell covered calls.
The expected ex-date for ETE is May 5th (not confirmed) so my April 28 puts must get assigned. If not, I let them expire worthless, wait until Wednesday or Thursday (based on the announced ex-date) and buy 100 shares directly (as there is no expiration available prior to ex-date except April 28).
Here is the trade:
STO 1 ETE Apr28 19.00 puts
@ 0.32 credit limit day