I just couldn't help myself. With further weakness in Vodafone shares I sold another put.
This morning I sold 1 Apr 20 $26 Put @ 1.80. If the shares get put to me I'd own 100 shares of VOD at a cost of $24.20 not counting commission. I come up with a yield on cost of 6.3% not counting any special dividends from Verizon.
Vodafone has already declared their first semi-annual dividend payable in February of $.5193 per share. Last year's first semi-annual dividend payable in February was .4736. This is a 9.6% increase. It should be noted that the actual raise was from 3.05 to 3.27 pence which is an increase of 7.2%. The additional increase was due to exchange rates.
If you are following my blog you will have noticed I already picked up 100 shares that I posted here on November 8th in my Income portfolio.
You may have also noticed that on April 9th 2012, I sold a July Vod $27 Put at 1.45 which ended up expiring worthless. I collected the full premium. This time around I've sold a lower dollar amount Put and at a higher premium. You can find this trade listed on my options tab.
That's a nice premium. Getting a return of 6.92% before commission or getting put 100 shares of VOD at $24.20. I'd count that as a win win. If only I had some cash available to make some moves. Although I know I would have spent it all by now because there's been lots of stocks that have come down to prices that'd I'd be willing to buy at. I'm just hoping that when I can finally get some more capital over to FI account that VOD will still be selling for the current prices or lower. Of course then the decision of selling a put or buying outright will come up. It'll probably depend on the ex-div date which I need to look up. I've been after VOD for a while but couldn't buy them in the high $20's and of course here I am without cash and it's down to $25.
ReplyDeleteThanks for stopping by. I've also wanted to own VOD for a while. I initially sold a put earlier in the year and just picked up 100 shares for my income account. I should have waited a little longer as the price has kept going down. I think I'll be happy however this trade turns out.
DeleteLet's hope the market stays down with the fiscal cliff coming up so we can all make some great buys. Good luck!
I agree on the markets needing to stay down. It's been bugging me that I haven't been able to pick up any shares recently. Especially in VOD since I've been waiting for what seems like forever to get a chance to start a position with them. I was disappointed to find out the ex-div date is coming up very shortly for VOD. If I want to get in to receive the next dividend then I need to hurry up and purchase.
DeleteI agree about the put option, that's a great result either way it turns out.