Thursday, August 20, 2009

New Trade - 8/20/09 - DE

STO (2) Naked Put - DE (Deere and Co. a.k.a. John Deere Farm Equipment) Sep 09 @ $42 Strike for $1.25 each. Net Premium $249. A solid company with a history of overcoming any and all economic challenges.

Risk Management:

Ticker: DE
Expiratoin: 18-Sep-09
Invest Date 20-Aug-09

Current Stock Price $44.40
Strike Price $42.00
Premium $1.25
Annual Dividend $1.12

Days to Expiration 29
Return (Assumes CSP) 2.98%
Annualized Return 37.46%
Downside Protection 8.22%
Effective Dividend if Put 2.75%

2 comments:

  1. Chris

    When acquiring a stock via a Cash secured put, how often do you get asked to take the stock before the expiry date is reached?

    ReplyDelete