DGI Adventure 10-28-16 Sold Cash Secured Put – Interactive Brokers Group, Inc (IBKR) – $32.00 strike – Nov 18 Expiration

This trade was actually executed on Tuesday 10/25/16. I didn’t get a chance to write about it until today.

My investment thesis for IBKR can be found in the post describing my first position, which I published back in July.  The point of this post is really just to record the details of the latest trade.

I have updated the portfolio and income tracker back at the mothership to reflect this position.

Dividend Cycle

IBKR goes ex-div on 11/29/16, which is 11 days after this contract expires. This particular stock isn’t exactly a conventional dividend growth stock. The dividend has been the same ($0.10/share) for the last 5 years, with the occasional “special” dividend sprinkled in occasionally.

It doesn’t all have to be about DGI you know.

Anyway, the premium on this trade is the equivalent of nearly 3 quarterly dividend payments. As I mentioned already, I will be eligible for the next quarter’s dividend if I should get assigned shares, and I like that.


SPL (Strike Price Logic)

My previous position in IBKR expired last week, and I mentioned when discussing that expiry, that maybe I could get a slightly lower strike price.

Well here you go. I got the next strike price down, with a decent premium.

I’ll take it!

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