Wednesday, January 16, 2013

Options Trade - Lorillard (LO)

I'm reporting another options trade this morning after LO's 3/1 stock split.

The Trade:

I sold 1 June 22 '13 $38.33 Put @ $2.72.  If I wait this one out I will either be buying another 100 shares at a cost of $35.61 (well below my cost basis of $38.46/share) or I get to keep $272 in premiums.

This has been updated on my options tab.

2 comments:

  1. Nice trade. I am saving cash to be able to do the same, buying stock thru selling puts. Can't wait for it. I cannot do it right now because I do not have enough cash to be buying the whole 100 shares lots, so I am buying fractions and saving to be able to start buying the whole hundreds. I like this way of buying stocks.

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  2. Martin,

    I look forward to seeing more of your options trades. It sounds like you are going about it the right way. Take care!

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