Monday, April 2, 2012

Profitable Trade: Walgreen's (WAG) Naked Puts

Today I closed the following transaction for a profit:

02/28/2012    STO 3 WAG Apr 21 2012 31 Puts @.59    164.71
04/02/2012    BTC 3 WAG Apr 21 2012 31 Puts @.05    -15.04

We made $151.67 in 33 days on ~$1400 in margin maintenance. This equates to a return on maintenance of 10.83% or 119.78% annual. These returns are inflated because there was an upcoming quarterly report and fear of fallout from the Express Scripts deal.

1 comment: