I am talking about Cash covered PUTs. For example I sold 3 114 dollar contracts (300) shares of CVX last week for 1.04 a contract so my account was CREDITED 312 dollars.
The contract expiration was last Friday. The contracts expired worthless so on Saturday My account was granted 100% of this credit because they expired out of the money.
If they would have expired in the money I would of had to purchase 300 shares at 114.00 and still received the credit lowering my cost basis 1.04 to 113.00 a share. Then I would get the dividend by ownership since Xdate is 2 weeks from now.
Either way I am happy. I do this with one or more stocks every week on the weeklies option chain on blue chip dividend payers!
I also sell covered calls on my holdings when appropriate increasing my dividends and lowering my cost basis. Lots of Fun and lots of extra dollars!
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