Showing posts with label JNJ naked put. Show all posts
Showing posts with label JNJ naked put. Show all posts
Wednesday, June 20, 2012
Profitable Trade: Johnson & Johnson (JNJ) Naked Puts
Today I closed out the following transaction for a profit:
03/28/2012 STO 2 JNJ Jul 21 2012 62.5 Puts @.95 178.51
06/20/2012 BTC 2 JNJ Jul 21 2012 62.5 Puts @.05 -10.03
We earned $168.48 in 84 days on an average of ~$2400 in margin maintenance. This equates to a 7% return or 30.4% annual. We were able to close out the transaction today with no commission. I now have more powder in the keg for future trades which I feel will present themselves shortly (see WAG and PG).
Saturday, April 21, 2012
Profitable Trade: SLV Naked Puts
Yesterday the following naked puts expired worthless:
04/16/2012 STO 3 SLV April 21 2012 30 Puts @.29 74.71
Silver stayed range bound so these puts expired worthless. We earned 4.3% in 5 days on $1737.13 in margin maintenance. That equates to 313.9% annual. We'll look to put that margin maintenance to work soon. I like the opportunities provided by the recent weakness in JNJ. I'm looking at the 60 puts a few months out.
04/16/2012 STO 3 SLV April 21 2012 30 Puts @.29 74.71
Silver stayed range bound so these puts expired worthless. We earned 4.3% in 5 days on $1737.13 in margin maintenance. That equates to 313.9% annual. We'll look to put that margin maintenance to work soon. I like the opportunities provided by the recent weakness in JNJ. I'm looking at the 60 puts a few months out.
Wednesday, March 28, 2012
New Trade: Johnson & Johnson (JNJ) Naked Puts
Today at the close of the market I entered into the following trade:
03/28/2012 STO 2 JNJ Jul 21 2012 62.5 Puts @.95 178.51
JNJ, one of the bluest of the blue chip Dividend Champions, was trading at just under 65 at the time I entered this trade. If these puts expire worthless we will earn $178.51 in 115 days on ~$2200 of margin maintenance. This equates to an 8.1% return on maintenance or 25.7% annual. JNJ currently yields 3.5% and it's set to hike it's dividend next quarter. If put to me the yield on cost will be around 4%. These puts were written near JNJ's support level. If the stock drops I feel confident I will be able to roll out and down for a net credit. As such, I have an exit strategy in place.
03/28/2012 STO 2 JNJ Jul 21 2012 62.5 Puts @.95 178.51
JNJ, one of the bluest of the blue chip Dividend Champions, was trading at just under 65 at the time I entered this trade. If these puts expire worthless we will earn $178.51 in 115 days on ~$2200 of margin maintenance. This equates to an 8.1% return on maintenance or 25.7% annual. JNJ currently yields 3.5% and it's set to hike it's dividend next quarter. If put to me the yield on cost will be around 4%. These puts were written near JNJ's support level. If the stock drops I feel confident I will be able to roll out and down for a net credit. As such, I have an exit strategy in place.
Thursday, January 19, 2012
New Trade: Johnson and Johnson (JNJ) Naked Puts
Today in a taxable account with JNJ trading at just under 65 I entered into the following transaction:
01/19/2012 STO 4 JNJ Apr 21 2012 60 Puts @.77 294.89
JNJ is obviously a long term hold. It is a dividend aristocrat, dividend champion, blue chip, widow and orphan core holding. If put to us our yield on cost will be over 3.8% with a dividend increase expected shortly after. We could then write covered calls on the position. If the puts expire worthless we will earn 8.73% in 93 days on margin maintenance of $3377.60 which equates to 34.26% annual. Of course we could choose to roll the position, we'll just have to see how things shake out.
01/19/2012 STO 4 JNJ Apr 21 2012 60 Puts @.77 294.89
JNJ is obviously a long term hold. It is a dividend aristocrat, dividend champion, blue chip, widow and orphan core holding. If put to us our yield on cost will be over 3.8% with a dividend increase expected shortly after. We could then write covered calls on the position. If the puts expire worthless we will earn 8.73% in 93 days on margin maintenance of $3377.60 which equates to 34.26% annual. Of course we could choose to roll the position, we'll just have to see how things shake out.
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