Closed my June $17.50 puts on AFSI for $0.15.
After I sold these puts, I put in a buy-to-close order to sell as soon as I'd made 80% of my potential profits. This is my SOP when selling puts.
Remember, I sold these puts on January 20 for $0.90.
The term of the put was six months. Holding to expiration would have paid me 5.14%, or 0.86% per month. [ $0.90/$17.50 * 100 = 5.14% 5.14%/6 months = 0.86% per month ]
I bought the put back early, having made 80% of my potential profit. The effective term was four months. My profit was $0.75 or 4.29% total or 1.07% per month [ $0.90 - 0.15 = $0.75. $0.75/$17.5 *100 = 4.29% 4.29%/4 months = 1.07% per month ]
So by closing early, I made 0.21% per month more than I would if I had just held the out-of-the-money puts to expiration.
0.21% per month isn't much, but it's 2.52% annualized--more than my bank account is paying right now.
Friday, April 29, 2011
Wednesday, April 13, 2011
Monday, April 11, 2011
Sold AAPL puts, TDSC puts
Sold AAPL Jul 16 2011 $330 puts for $18.80.
Sold TDSC Nov 19 2011 $45 puts for $6.00
Sold TDSC Nov 19 2011 $45 puts for $6.00
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