Year End 2009

Okay, I have been out of the loop now for a couple of months. I have had to travel to places that don't have high speed internet but I have all that fixed now with my new DROID! I will pick back up my blog postings in the new year however they may not all be real time as before. I will try to post them all as close to real time as possible but if I am on the road trading from my Smart Phone then I will have to wait until that evening for posting. Anyhow, here was a trade for today:

Investment Return / Protection For Naked Puts

Ticker: PFE
Expiratoin: 2/19/10
Invest Date 12/30/09

Current Stock Price $18.43
Strike Price $18.00
Premium $0.63
Annual Dividend $0.72

Days to Expiration 51
Return (Assumes CSP) 3.50%
Annualized Return 25.05%
Downside Protection 5.75%
Effective Dividend if Put 4.15%

New Trade - 8/25/09 - NUE

STO (2) Naked Put - NUE (Nucor) Oct 09 @ $40 Strike for $1.00 each. Net Premium $199.

Risk Management:

Ticker: NUE
Expiratoin: 16-Oct-09
Invest Date 25-Aug-09

Current Stock Price $46.50
Strike Price $40.00
Premium $1.00
Annual Dividend $1.40

Days to Expiration 52
Return (Assumes CSP) 2.50%
Annualized Return 17.55%
Downside Protection 16.13%
Effective Dividend if Put 3.59%

New Trades - NSC, NYX, UNG, CHU - 8/25/09

I will be out of town most of this week so if I make a trade I will just do a quick entry without the risk management details.

Made the following Covered Call trades on existing shares Monday -

NYX - $28 Strike
UNG - $12 Strike
CHU - $15 Strike (I bought an additional 300 shares of this one and I am now writing calls on 500 shares).

Made the following NP positions Monday -

NSC - $45

I am looking for an entry point for NPs on IPI and NUE this week but I am hoping for a pull back first.

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%

Trade - 8/19/09 - HCBK

STO (5) Naked Put - HCBK (HUDSON CITY BANCORP INC) Sep 09 @ $12.50 Strike for $0.20 each. Net Premium $97. This is a regional bank in New Jersey and New York. They are taking advantage of other banks misfortunes. Pull their quarterly and yearly financials and watch how they are growing. Also they are commited to shareholder value and are buying back shares. My BB&T Calls were all taken early so I am looking for some "financial" industry exposure.

Risk Management:

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

Current Stock Price $13.42
Strike Price $12.50
Premium $0.20
Annual Dividend $0.60

Days to Expiration 30
Return (Assumes CSP) 1.60%
Annualized Return 19.47%
Downside Protection 8.35%
Effective Dividend if Put 4.88%