Money and Finance
This afternoon I sold a Dec 22 2012 Put option on Archer Daniels Midland Company (ADM) for $0.89. After brokerage costs I netted a total of $81.01. The put option gives me a good return either way that it works out.
If ADM is trading above $26 on expiration then I will pocket the full $81.01 premium. That would be a return of $81.01 / $2,600 = 3.09%. Even better is that I would have gotten that return in 99 days which is equivalent to a 11.39% annual return.
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- Lots Of Options
No this post isn't about all the great investment opportunities that Mr. Market is giving us, it's about all of my recent option trading/selling activity. There's been a lot more activity on this front than I expected to be reporting. My...
- Recent Transaction
Today I decided to go on and buy back my $7 Jan 18 2014 Put option on Bank of America. I bought to close the option for $0.89 plus $7.98 in commission/fees. It cost me a total of $96.98 to close out the position. I originally sold the put back on...
- Selling Puts For Added Income
This morning Archer-Daniels Midland was trading at $26.97. Since I would like to get more into the stock with it trading around a 14% discount to my calculated fair value, I figured I would check out the potential option moves to make. The fair value...
- Recent Transaction
On Tuesday, I decided to sell another put option on Intel. This time it was a $26 September 22, 2012 Put Option for $0.48. After commission I netted a $40.01 option premium. Here's how the option can play out. (1) Option expires - I received $40.01...
- Intel Put Option
With Intel currently trading at $25.60 it looks like my put option that I sold on Intel is going to expire today. It's a good and bad thing because I wouldn't have minded getting Intel at the $25 strike less the premium. But I got a pretty good...
Money and Finance
Recent Transaction
This afternoon I sold a Dec 22 2012 Put option on Archer Daniels Midland Company (ADM) for $0.89. After brokerage costs I netted a total of $81.01. The put option gives me a good return either way that it works out.
If ADM is trading above $26 on expiration then I will pocket the full $81.01 premium. That would be a return of $81.01 / $2,600 = 3.09%. Even better is that I would have gotten that return in 99 days which is equivalent to a 11.39% annual return.
Read more »
- Lots Of Options
No this post isn't about all the great investment opportunities that Mr. Market is giving us, it's about all of my recent option trading/selling activity. There's been a lot more activity on this front than I expected to be reporting. My...
- Recent Transaction
Today I decided to go on and buy back my $7 Jan 18 2014 Put option on Bank of America. I bought to close the option for $0.89 plus $7.98 in commission/fees. It cost me a total of $96.98 to close out the position. I originally sold the put back on...
- Selling Puts For Added Income
This morning Archer-Daniels Midland was trading at $26.97. Since I would like to get more into the stock with it trading around a 14% discount to my calculated fair value, I figured I would check out the potential option moves to make. The fair value...
- Recent Transaction
On Tuesday, I decided to sell another put option on Intel. This time it was a $26 September 22, 2012 Put Option for $0.48. After commission I netted a $40.01 option premium. Here's how the option can play out. (1) Option expires - I received $40.01...
- Intel Put Option
With Intel currently trading at $25.60 it looks like my put option that I sold on Intel is going to expire today. It's a good and bad thing because I wouldn't have minded getting Intel at the $25 strike less the premium. But I got a pretty good...