Today I am reporting an options trade from Friday, 03/01, with BBVA. Shares of BBVA are off about 10% from their high of nearly 10.52. I decided I would like to own more shares of this company so I sold another put.
The Trade:
I Sold 3 BBVA July 20 '13 $9 Put @ .7
This trade could turn out a few ways:
1) I hold shares until expiration and shares are trading above $9.00. I will get to keep the $210 in options premiums.
2) I hold shares until expiration and share are trading below $9.00. I will get assigned 300 shares of BBVA at a cost of $8.30 share. This is a discount of 12.6% to where the stock is currently trading. This price also corresponds to a yield of 6.4%.
3) Shares of BBVA go on a run and I decide to buy back the put early for a profit less than $210.
I currently have 16 open options positions and a total options profit of $1040 for 2013. My options page has been updated accordingly.
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