Friday, May 22, 2009

Trade - 5/22/09 - AFL

STO (3) Naked Put - AFL (Aflac) June 09 @ $30 for $1.05 each. Net Premium $313

Risk Management:

Ticker: AFL
Expiratoin: 19-Jun-09
Invest Date 22-May-09

Current Stock Price $34.12
Strike Price $30.00
Premium $1.05
Annual Dividend $1.12

Days to Expiration 28
Return (Assumes CSP) 3.50%
Annualized Return 45.63%
Downside Protection 15.15%
Effective Dividend if Put 3.87%

2 comments:

  1. What is your method for choosing which stocks to sell CSP's on? I am currently only doing covered calls, and am thinking of adding cash secured puts to my arsenal. Feel free to check out my blog as well @ coveredcallsinvestor.blogspot.com

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  2. Short answer is that I will only do puts on stock that I want to own. Goto the Education section on my blog and I give a detailed list of what I look for in picking a stock. Shoot me another comment if you have any questions. I will check out your blog as well.

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