Real Estate Investment Trusts, or REITS, are known for their generous dividends. This aspect of REITS fits in well with our income-oriented approach
Back in March we attempted a put sale on CubeSmart, and today we are going to do the same on Realty Income Trust (NYSE: O), a leading REIT that is often known as “The Monthly Dividend Company.”
We had intended to follow this path sooner, even contemplating O for an outright purchase, but various things kept getting in the way, mostly because of feeling bad from chemotherapy treatments and surgery from pancreatic and other cancers. I’m about to start another set of several rounds of chemo. I’m feeling a little better today so it seemed like an ideal time finally to get this done before I start feeling worse again for the next several months.
The market is up near all time highs today, but O itself is at about the middle of its 52-week range. REITs in general have been suffering a bit for the last few days. So it might not be the ideal time to try to pick up some O on the cheap, but it’s not a bad time either. We’re going to go for a relatively low delta of .1668 and if we get assigned then we will pick up shares at a significant nearly 9% discount to today’s price, and our dividend yield on cost would rise above 6%.
| Option Type | Short Put (STO) |
| Date of Sale | 07/10/2025 |
| Option Sold | O250919P52.5 |
| Expiration Date | 09/19/2025 |
| Days to Expiration | 71 |
| Number Sold | 1 |
| Premium per Contract | $40.00 |
| Total Premium Received | $40.00 |
| Potential Liability/Cash Put Reserve | $5,250.00 |
| Company Ticker | O |
| Stock Price at time of Put sale | $57.01 |
| Strike Price | $52.50 |
| Cost per Share if Assigned | $52.1 |
| Discount to Current Price If Assigned | 8.61% |
| Annual Dividend | $3.228 |
| Dividend Yield at Current Price | 5.66% |
| Dividend Yield on Cost if Assigned | 6.20% |
| Net ROI on Reserve If Not Assigned | 0.70% |
| Annualized ROI on Reserve If Not Assigned | 3.61% |