Trade - 7/27/09 - MEE

STO (3) Naked Put - MEE (Massey Energy) Aug 09 @ $20 for $0.65 each. Net Premium $193. I have been reluctant up to now to invest in coal but this one is a strong comapny and this trade offers alot of downside protection. China is opening 1 new coal burning plant a week and there is no end in sight for them. China gets the bulk of their coal from the good 'ol USA.

Risk Management:

Ticker: MEE
Expiratoin: 21-Aug-09
Invest Date 27-Jul-09

Current Stock Price $23.65
Strike Price $20.00
Premium $0.65
Annual Dividend $0.24

Days to Expiration 25
Return (Assumes CSP) 3.25%
Annualized Return 47.45%
Downside Protection 18.18%
Effective Dividend if Put 1.24%