Wednesday, August 19, 2009

Trade - 8/19/09 - TK

STO (2) Naked Put - TK (TEEKAY CORP) Sep 09 @ $17.50 Strike for $0.90 each. Net Premium $179. I currently hold the Aug 15 NPs that will expire this Friday so I am upping my strike point for more premium for the Sept strike. A good niche shipping company with a good dividend. This will be the 3rd month in a row that I have been writing Puts on it.

Risk Management:

Ticker: TK
Expiratoin: 18-Sep-09
Invest Date 19-Aug-09

Current Stock Price $17.90
Strike Price $17.50
Premium $0.90
Annual Dividend $1.27

Days to Expiration 30
Return (Assumes CSP) 5.14%
Annualized Return 62.57%
Downside Protection 7.26%
Effective Dividend if Put 7.62%

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