Friday, November 13, 2009

Closed puts written on ANF

I paid $0.40 per share to close the Feb 27 ANF puts I sold in October for $2.16 per share. My original hypothesis--that ANF is badly overvalued, and will drop below $30 by February--may not play out. The stock is healthy, even if the company is not. I'm pleased to make a little money by closing the sold puts early. Ignoring the puts I bought, I've made $1.76 per share or 6.5% of the $27 share price in forty days. Including the puts I bought, however, I'm still at a loss my ANF position.