Wednesday, July 8, 2009

Trade - 7/8/09 - TK

STO (2) Naked Put - TK (Teekay Corp) Aug 09 @ $15 for $0.75 each. Net Premium $223.

Troy and I have been researching this one for about a month and I just felt like the pull back was a good entry point for a August Naked Put. This seems to be a solid company that is well diversified in the tanking industry through 3 subs/MLPs that it operates. I would rather have less of a debt load on the company but from their most recent investors conference they seem committed to using current cash flow to pay down debt.

Risk Management:

Ticker: TK
Expiratoin: 21-Aug-09
Invest Date 08-Jul-09

Current Stock Price $17.60
Strike Price $15.00
Premium $0.75
Annual Dividend $1.27

Days to Expiration 44
Return (Assumes CSP) 5.00%
Annualized Return 41.48%
Downside Protection 19.03%
Effective Dividend if Put 8.88%

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