Trade - 5/15/09 - BMY

STO (2) Naked Put - BMY June 09 @ $20 for $0.75 each. Net Premium $149

I am focusing on diversification with this one. I have been reluctant to invest in Pharma with all the O'bama talk on health care reform. However, this is a strong company with a big pipeline and pays a healthy health dividend.

Risk Management:

Ticker: BMY
Expiratoin: 19-Jun-09
Invest Date 15-May-09

Current Stock Price $20.05
Strike Price $20.00
Premium $0.75
Annual Dividend $1.24

Days to Expiration 35
Return (Assumes CSP) 3.75%
Annualized Return 39.11%
Downside Protection 3.99%
Effective Dividend if Put 6.44%