I’m reporting an options trade from last week for CAT. I’ve already bought and closed early two previous CAT puts for an options profit of $287.
I Sold 1 CAT Nov 16 ’13 $80 Put @ 3.37
This trade could turn out a few ways:
1) I hold shares until expiration and shares are trading above $80.00. I will get to keep the $337 in options premiums.
2) I hold shares until expiration and shares are trading below $80.00. I will get assigned 100 shares of CAT at a cost of $76.63/share. This is a discount almost 8% to where the stock is currently trading and a 12.5% discount to my cost basis of around $87. CAT recently raised their dividend 15% to .60 from .52 for their August payment. This price corresponds to a yield of around 3.1% which I find attractive.
3) Shares of CAT go on a run and I decide to buy back the put early for a profit less than $337.
I currently have 14 open options positions and a total options profit of $3115 for 2013. My options page has been updated accordingly.