Profitable Trade: Conoco-Phillips (COP) Put

Today I closed out the following transaction in a taxable account:

11/25/2011  STO 1 COP Jan 21 2012 60 Put @ 1.30                                 +119.23
12/27/2011  BTC 1 COP Jan 21 2012 60 Put @ .05                                       -5.02

We didn't fight for that last nickel and we reached the point where we could close without commissions. We made $114.21 in 31 days. This is a return of 1.9% or 22.37% annual. If one were to calculate return on margin which was $781.84 then we have a return of 14.6% or 171.9% annual. The latter returns are sought to be exploited in the book I recommended called Selling Put Options My Way.

We continue to close positions when fear is at a minimum and we await the fear to return, loaded up with cash, so we can enter new positions.