Options Trade - CAT & INTC

I'm reporting two more options trades from yesterday.  I sold a CAT put and closed out an INTC put.


The first trade:

I Sold 1 CAT Nov 16 '13 $70 Put @ 2.65

This trade could turn out a few ways:

1) I hold shares until expiration and shares are trading above $70.00.  I will get to keep the $265 in options premiums.

2) I hold shares until expiration and shares are trading below $70.00.  I will get assigned 100 shares of CAT at a cost of $67.35/share.  This is a discount of 16% to where the stock is currently trading.  CAT is due for a dividend raise for their August payment.  If they raise the dividend by the same amount as last year, .06, then this price corresponds to a yield of around 3.4% which I find very attractive.

3) Shares of CAT go on a run and I decide to buy back the put early for a profit less than $265.


The second trade:

I bought-to-close my INTC July 20 '13 $21 Put @ .75.  I originally sold this put in November for 1.96.  I profited $121 before fees in about 5 months.  Considering the margin maintenance requirement on this put averaged around $350 , I made a nice profit.

I currently have 15 open options positions (2 with INTC and 2 with CAT now) and a total options profit of $1967 for 2013.  My options page has been updated accordingly.