Wednesday, March 27, 2013
Options Trade - LO
I originally sold 1 LO January 18 '14 $40 Put at $5.35. You can find that post here.
Shares of LO have moved up a little since that trade earlier this month on March 7th. I only waited about 20 days to close out the position for a nice gain. So I bought-to-close this put for $3.75.
I earned a profit of $160 before commissions in less than a month! My margin maintenance requirement for this put stayed around $800 so I earned 20% on my money in a short time. This is an annualized rate of 269%!
I continue to be long LO and will continue selling puts on weakness. I'm not worried in the short-term about the company and the potential for menthol bans.
My total yearly profit from options is $1478. I now have 14 open options and my options tab has been updated here.
Subscribe to:
Post Comments (Atom)
You're pushing close to $5k in forward dividends, and that option income is great at $1,500 in the first quarter. Keep up the good work.
ReplyDeleteThanks PIP! I've surprised myself with the options income so far. I don't think I can hold that pace but I will sure try. As long as the market keeps going up I will be collecting a lot of put premiums.
DeleteTake care!
Love this trade! Lock in those profits when the opportunity presents itself!
ReplyDeleteHi writing2reality,
DeleteThanks! I was up big in a short amount of time. I also still had two other puts on LO so I decided to close.
Thanks for stopping by
AAI, I love this stock and as soon as I save more cash i plan adding more stock like this using puts. Options are a great tools if done carefully. Your 269% profit is outstanding.
ReplyDeleteThanks Martin. I like LO as well and it is a full position. I still have 2 more open puts though so I could end up with more shares. Both are in the positive so I may close those early also.
DeleteThanks for stopping by!