Sunday, March 18, 2012

Trade Continuation: Walgreen's (WAG) Naked Puts

In a taxable account I continued the following transaction:

02/27/2012    STO 4 WAG Mar 17 2012 32 Puts @.23             78.99
03/06/2012    BTC 4 WAG Mar 17 2012 32 Puts @.3            -133.00
03/06/2012    STO 4 WAG Apr 21 2012 31 Puts @.7             276.94

This was another trade I couldn't monitor while on vacation and disconnected from the world... so I rolled it down and out for a credit. Margin maintenance on this trade is down to $1532.00. If these expire worthless we will earn $222.93 in 54 days which equates to a return on maintenance of 14.55% or 98.35% annual. Not too shabby. :)

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