This post is a follow up to my post, Option Trades Update - Part #1 for Jun 21, 2015.
My put option in Rogers Communications Class B stock was assigned. I checked my broker account last night the option was not assigned. I work up this morning and checked my brokerage account and the option was assigned. I was expecting the assignment to show up this morning first thing as the last time an option was assigned to me, I found out Monday night.
I owned 100 shares of Rogers Communications Class B stock since June 2014 when a put option was assigned with a $44.00 strike price, which you can read about here. My average cost base as a result of the first option assignment was $4366.90.
This new option assignment had a $42.00 strike price.
Summary of Latest Trade
Investment : 100 shares * $42.00 = $4200
Option premium including commissions : $27-$10.95 = $16.05
Assignment fee : $24.95
Current annual dividend : $1.92 / share
Total Cost = $4200- $16.05- $24.95
Yield = 1.92 /(4208.90/100)
With this latest put option assignment, I now own 200 shares of RCI.B.
number of shares = 200
Total cost = $4366.90 +$4208.90 = $8575.80
ACB/share = $8575.80 /200 =$42.88
Yield = $1.92 / $42.88
Although the premium received after commissions was less than the option assignment fee, the overall cost basis is reduced on my overall position. This purchase adds $192.00 to my annual dividend income based on the current annual dividend. RCI.B is scheduled to pay a dividend in early July, so these 100 shares will not be eligible for the dividend as the record date as now passed. My initial purchase in 2014 in which I missed the July dividend payment of 2014 as well.
I will update my investing portfolio spreadsheet in early July to reflect this new purchase.
Disclosure : Long RCI.B
am not a financial planner, financial advisor, accountant or tax
attorney. The information on this blog represents my own thoughts and
opinions and should NOT be taken as investment or business advice.
individual should do their due diligence to make their own financial
decisions based on their financial situation and tolerance for risk.