Wednesday, May 27, 2009

Trade - 5/27/09 - ED

STO (2) Naked Put - ED (Consolidated Edison) June 09 @ $35 for $.70 each. Net Premium $139.

I am happy to own this one if put at a 7% dividend.

Risk Management:

Ticker: ED
Expiratoin: 19-Jun-09
Invest Date 27-May-09

Current Stock Price $35.05
Strike Price $35.00
Premium $0.70
Annual Dividend $2.36

Days to Expiration 23
Return (Assumes CSP) 2.00%
Annualized Return 31.74%
Downside Protection 2.14%
Effective Dividend if Put 6.88%
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3 comments:

  1. coverme_investorMay 30, 2009 at 1:54 PM

    Chris,

    Im thinking of putting together a post on my blog that summarizes all of the covered call/cash-secured put strategies that are discussed on various blogs, and wanted to know if it would be alright if I included your method.

    Thanks, Jake

    ReplyDelete
  2. Chris SJune 1, 2009 at 11:17 AM

    Yes, can you link back to my blog where you got it though.....

    ReplyDelete
  3. coverme_investorJune 1, 2009 at 2:42 PM

    Sure, no problem..

    ReplyDelete

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