New Trade - 1/6/10 - CLX - (Clorox)

Naked Put - CLX (Clorox) Feb 10 @ $60 Strike for $0.85 each. Net $85 per contract.

Clorox is one of my sure things. I originally purchased it at $56 and kept writing calls on it until it was finally taken from me last month at $60. I have been waiting for a pull back but it hasn't happened so I am going to just jump back in. Clorox is a solid company with a long long history of raising dividends. Nothing would make me happier that to get put this stock at a price of $59.15 ($60 - $0.85 premium). Not the juiciest return of my portfolio but a very safe investment.

Ticker: CLX
Expiratoin: 2/19/10
Invest Date 1/6/10

Current Stock Price $61.75
Strike Price $60.00
Premium $0.85
Annual Dividend $2.00

Days to Expiration 44
Return (Assumes CSP) 1.42%
Annualized Return 11.75%
Downside Protection 4.21%
Effective Dividend if Put 3.38%