I bought another 100 shares of VFC International. I bought them, but they were technically assigned to my courtesy of a cash secured put that I sold back in December. You can read all the VFC option contract details here. This latest purchase takes my VFC share total to 200. This represents quarterly dividend income of $84, annual income of $336 dollars.
It’s not all good news. The share assignment means I sold a contract at a higher than market price. My strike price was $57.50. The contract premium paid was $192. This premium reduced my cost basis of this 100 share lot from $57.50 per share down to $55.58 per share.VFC closed at $51.85 on Friday. This means I paid $3.73 more per share than market value, or a loss of $373 dollars. Although it seems I took it on the chin like Kermit, I don’t see it this way. There are lots of ways to continue reducing my cost basis.
I plan on selling covered calls against this 100 shares. I’m confident that I’ll be able to quickly get out of the red here. If I don’t get out of the red, I’ll happily collect dividends and DRIP invest.
My overall cost basis of my 200 VFC shares is$52.56 per share. This is $0.71 cents per share above current market value. I’ll take that.
I recently wrote an analysis of VFC Corporation. Take a look if you’re interested in learning more about this company.
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