To The Moon

How I Secured My Final Dividend from VST and Recovered It with a Smart Options Move 💼📉

As the expiry of my covered call nears and my 100 shares of Vistra Energy (VST) are likely to be called away at the $135 strike on 20 June 2025, I took one last opportunity to capture the dividend while also executing a calculated options strategy to recover its value. The dividend payout of $0.225 per share on 18 June translates into a total of $22.50 for my lot of 100 shares. Knowing that once my shares are called away I would no longer be eligible for future dividends, I decided to make one final intelligent play.

📅 Capturing the Dividend While It Lasts

I held on to my 100 shares of VST long enough to qualify for the $0.225 dividend. With my average purchase price at $155 and the current market price sitting at $175.60, I’m sitting on an unrealized gain of $2,075.64. This covered call trade was well timed to lock in profits, but I was keen not to let go of the dividend benefit without a backup plan.

📉 Selling a Put to Replace the Dividend

Since I expect my shares to be called away shortly after dividend day, I sold a VST PUT with a strike price of $131, expiring on 27 June. The premium I collected from this put option was $0.24 or $24 in total. While the dividend was $22.50, this put option premium effectively replaces that payout—almost dollar for dollar.

The put strike was chosen with a deep buffer from the current price, ensuring the contract will likely expire worthless. This makes the $24 pure profit, unless the stock experiences a drastic correction—which is unlikely within such a short timeframe. My decision was anchored on low delta, short expiry, and the strong upward momentum in VST’s recent performance.

🔐 A Smart Hedge as I Close the Position

By selling the put, I created a final income stream to match the dividend I’ll no longer receive post-assignment. I also limited downside risk by choosing a far out-of-the-money strike. If VST somehow collapses toward $131 by expiry, I’m still confident in owning the stock again at a discounted price—well below my initial cost basis.

💰 Final Summary

• Captured final dividend: $22.50

• Sold put option to recover dividend: Premium $17

• Likely outcome: Put expires worthless, pocket full premium

This strategy allowed me to gracefully exit VST while ensuring every last cent of potential yield was harvested. I made the stock work for me—right down to the end 

@CaptainTiger @TigerTradingNotes @MillionaireTiger @Daily_Discussion @TigerStars 

Thanks all for the support