Tuesday, January 5, 2010

New Trade - 1/5/10 O (Realty Income Corp)

Naked Put - O (Realty Income Corp) Feb 10 @ $25 Strike for $0.85 each.

Risk Management:

Ticker: O
Expiratoin: 2/19/10
Invest Date 1/5/10

Current Stock Price $26.40
Strike Price $25.00
Premium $0.85
Annual Dividend $1.72

Days to Expiration 45
Return (Assumes CSP) 3.40%
Annualized Return 27.58%
Downside Protection 8.52%
Effective Dividend if Put 7.11%

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