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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