On Friday I closed the following transaction for a profit:
5/30/12 STO 3 WAG Jul 21 2012 28 Puts @.41 $110.75
7/13/12 BTC 3 WAG Jul 21 2012 28 Puts @.03 -9.04
I was able to close the trade without paying commissions so I pulled the trigger. In this trade we made $101.71 in 44 days on ~$1200 in margin maintenance. This equates to a return on maintenance of 8.47% or 70.26% annual. I would have rolled out and/or down but with the recent rise of WAG above 30 I decided to wait. If and when WAG drops to 29 and change I will look to sell the 27 or 28's.
Showing posts with label Walgreen's. Show all posts
Showing posts with label Walgreen's. Show all posts
Monday, July 16, 2012
Wednesday, May 30, 2012
New Trade: Walgreen's (WAG) Naked Puts
Today with the markets in the red and Walgreen's trading down at $30.80 I entered into the following transaction:
5/30/12 STO 3 WAG Jul 21 2012 28 Puts @.41 $110.75
The margin maintenance is ~$1,000 for this 52 day trade. This equates to ~11% return on margin in 52 days or 77.21% annual if they expire worthless.
WAG has had great support at the 31 level and these puts are a full 10% below that. If put to us the yield on cost will be 3.25% which is way above historical highs for this Dividend Champion.
5/30/12 STO 3 WAG Jul 21 2012 28 Puts @.41 $110.75
The margin maintenance is ~$1,000 for this 52 day trade. This equates to ~11% return on margin in 52 days or 77.21% annual if they expire worthless.
WAG has had great support at the 31 level and these puts are a full 10% below that. If put to us the yield on cost will be 3.25% which is way above historical highs for this Dividend Champion.
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.
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.
Tuesday, March 27, 2012
Profitable Trade: Walgreen's (WAG) Naked Puts
Today I closed the following transaction for a profit in a taxable account:
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
03/27/2012 BTC 4 WAG Apr 21 2012 31 Puts @.05 -20.04
Walgreen's didn't collapse after losing the Express Scripts deal so these puts lost all their value. I took the opportunity to close the position without a commission. We made $202.89 in 31 days on ~$1700 in margin maintenance. This equates to a return on maintenance of 11.93% or 140.46% annual. The returns are inflated as there was a quarterly report looming and fear from the Express Scripts deal.
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
03/27/2012 BTC 4 WAG Apr 21 2012 31 Puts @.05 -20.04
Walgreen's didn't collapse after losing the Express Scripts deal so these puts lost all their value. I took the opportunity to close the position without a commission. We made $202.89 in 31 days on ~$1700 in margin maintenance. This equates to a return on maintenance of 11.93% or 140.46% annual. The returns are inflated as there was a quarterly report looming and fear from the Express Scripts deal.
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. :)
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. :)
Tuesday, February 28, 2012
New Trade: Walgreen's (WAG) Naked Puts
Today in a taxable account I entered into the following transaction:
02/28/2012 STO 3 WAG Apr 21 2012 31 Puts @.59 164.71
Walgreen's is a Dividend Champion, Dividend Achiever and Dividend Aristocrat. If these puts expire worthless we will earn 11.59% in 53 days on $1421.06 in margin maintenance. This equates to 79.82% annual. If the stock drops below support levels it appears that we can roll down and out for a net credit....and I only roll for a net credit.
02/28/2012 STO 3 WAG Apr 21 2012 31 Puts @.59 164.71
Walgreen's is a Dividend Champion, Dividend Achiever and Dividend Aristocrat. If these puts expire worthless we will earn 11.59% in 53 days on $1421.06 in margin maintenance. This equates to 79.82% annual. If the stock drops below support levels it appears that we can roll down and out for a net credit....and I only roll for a net credit.
New Trade: Walgreen's (WAG) Naked Puts
Yesterday in a taxable account I entered into the following transaction:
02/27/2012 STO 4 WAG Mar 17 2012 32 Puts @.23 78.99
Walgreen's is a Dividend Champion, Achiever and Aristocrat. It has been trading in a narrow range and I took advantage of a drop in price to write these puts. If these expire worthless we will earn 3.64% on $2165.25 in margin maintenance or 69.92% annual. If the stock drops it looks like these puts can be rolled down and out for a net credit.
02/27/2012 STO 4 WAG Mar 17 2012 32 Puts @.23 78.99
Walgreen's is a Dividend Champion, Achiever and Aristocrat. It has been trading in a narrow range and I took advantage of a drop in price to write these puts. If these expire worthless we will earn 3.64% on $2165.25 in margin maintenance or 69.92% annual. If the stock drops it looks like these puts can be rolled down and out for a net credit.
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