Saturday, August 18, 2012

Profitable Trade: Lowe's (LOW) Naked Puts

Yesterday the following puts expired worthless:

7/16/12  STO 4 LOW Aug 18 '12 24 Puts @.34   $122.97

At the time of this trade LOW was down ~3% to $25.90. It ended up in the high 27's. This was a 33 day trade with average margin maintenance of ~$1400. Our return on maintenance was 8.78% or 97.1% annual. I will look to trade Lowe's again should the price drop as it has a lot of daily moves but not much of a monthly one. This is perfect for put selling.

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