STO (3) Naked Put - CTL (CENTURYTEL INC) Sep 09 @ $30 Strike for $0.70 each. Net Premium $208. This is a continuation of a stock that I traded last month.
Risk Management:
Ticker: CTL
Expiratoin: 18-Sep-09
Invest Date 12-Aug-09
Current Stock Price $31.50
Strike Price $30.00
Premium $0.70
Annual Dividend $2.80
Days to Expiration 37
Return (Assumes CSP) 2.33%
Annualized Return 23.02%
Downside Protection 6.98%
Effective Dividend if Put 9.56%
1 day ago
Chris,
ReplyDelete1. First line -- I think it should be Sep09 rather than Aug09.
2. Why wouldn't you prefer to do a covered call here to capture the quarterly ex-div in early Sept?
Jeff
You are correct that was a typo. It is Sept 09. NP has less capital committed/required. Also if I did my math correct the return was actually slightly higher on the NP than the CC when including the dividend with the CC....
ReplyDelete