New Trade - LLY - 1/5/10

Naked Put - LLY (Eli Lilly) Feb 10 @ $34 Strike for $0.85 each.

Risk Management:

Investment Return / Protection For Naked Puts

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

Current Stock Price $35.10
Strike Price $34.00
Premium $0.85
Annual Dividend $1.96

Days to Expiration 45
Return (Assumes CSP) 2.50%
Annualized Return 20.28%
Downside Protection 5.56%
Effective Dividend if Put 5.91%