Friday, July 31, 2009

Trade - 7/31/09 - VALE

STO (2) Naked Put - VALE (VALE SA) Aug 09 @ $19 Strike for $0.55 each. Net Premium $109. Purely a speculation play on the global recovery. Especially that of China and emerging nations.

Risk Management:

Ticker: VALE
Expiratoin: 21-Aug-09
Invest Date 31-Jul-09

Current Stock Price $19.67
Strike Price $19.00
Premium $0.55
Annual Dividend $0.48

Days to Expiration 21
Return (Assumes CSP) 2.89%
Annualized Return 50.31%
Downside Protection 6.20%
Effective Dividend if Put 2.60%

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