Options Trade – Verizon Communications Inc (VZ)

I made yet another Cash Secured Put trade in Verizon Inc (VZ) today – since it is trading near it’s 52 week low:

• Sold: Ten (10) June 16, 2023 Puts at $0.55
• Strike Price: $34.50
• *Premium Collected: $550.00

If I am forced to buy the 1000 shares, my entry price for VZ would be *$33.95, which is over a 40% discount to Verizon’s $57.00 Morningstar Fair Value estimate. VZ also pays a ridiculous 7.28% dividend, that I will start collecting in early July 2023 if I am put the shares, so that would add another $652.50 to the trade. I would probably also do a covered call for the 1000 shares unless Verizon drops a great deal – so, again, depending on the market conditions I could also turn this into a Wheel Options Strategy – Rinse & Repeat.

*Excludes transaction costs.