Oct 18, 2015 was option expiration date for the month of October. I wrote recently on the two companies that I recently sold put options on, which you can read about here and here. My put option in Roger's Communications Class B stock with a $42.00 strike price was not assigned.
When I sell a put option in company "A", I am obligated to BUY 100 shares of Company "A" before or at option expiration. The buyer of a put option is the choice to sell 100 shares of Company "A" at the strike price on or before expiration day.
My naked put option was assigned for TD Bank, which has ticker symbol TD on the Toronto Stock Exchange. The premium I received for the put option was $71.05 after commissions. My broker has an option assignment fee of $24.95.
Adjusted Cost Base = 100 shares *strike price - (option premium with commission ) + option assignment fee
= 100*$56.00 - $71.05 + $24.95
Yield on Cost = annual dividend / ACB =$1.88/55.5390 = 3.385%
As of writing this post, TD trades at $53.67 a share. The option assignment adds $188.00 to my annual dividend income.
TD Bank has grown its dividend at a CAGR 6.5 % over the 5 years between 2008 to 2013. In 2009 and 2010, TD Bank did not increase its dividend due to the financial meltdown and the recession that happened. The other 5 major banks did not raise there dividend during this time as well. TD Bank also increased its dividend in 2014 already. The other Canadian banks have a CAGR of only 3.3% over the same 5 year span.
Disclosure: Long TD
EDIT: Feb 16, 2015 My option premium is now correct above. The premium was $0.82 per contract and not $1.00 per contract. So with commissions the premium including commissions is $71.05.