I'm reporting an options assignment with PAAS. So I originally posted back on April 17th about making a speculative purchase in PAAS. I also posted some reasons I was interested in the stock. Well the stock hasn't done much , it's actually down a little since then and is my worst performer. This is why I don't make many speculative purchases. However, I plan to hold and see what happens with this one while I collect a 4% dividend.
The original post was here. I bought 150 shares and sold 2 puts expiring in July. Well one of those puts was assigned early. There is always a risk of early assignment when options are "in the money."
I still have 1 put outstanding with an expiration of July 20th.
This purchase brings my forward 12-month dividend total to $6189.02.
Well as long as it pays 4% dividend I think it is an OK trade. You can always sell later. Maybe now you can start selling covered calls against this stock as long as you get called away. You will be collecting dividends and covered calls income. But it all depends on the trade strategy you have with this stock.
ReplyDeleteHey Martin,
DeleteI thought about selling covered calls but I don't want to limit my upside in case silver starts to come back strong. As long as they are paying me a 4% dividend I will hold and see what happens. If the dividend is cut then I'm out.
Take care!