Trade Placed: April 2009

Today I sold April puts. The market finally has gotten its rally and the lack of any movement in the VXN the past few weeks made me place the trade before the 75 strike lost too much of its premium. If the market continues on its upward path or remains about where it is now, these puts should remain safely out of the money. I sold 15 contracts, rather than the usual 10, because the 75's were so far out of the money.

Index level: 108.36
Sell to open: 15 Apr 09 75 Puts
Credit received: .24
Initial Margin req.: $11,265.00
Commission: $18.75
Net credit: $341.25
Days to expiry: 37
Simple return: 3.03%
Yield: 29.88%
% to ITM: 30.79%
Probability of expiring ITM: 3.75%

Please view my disclosure on the bottom of this blog.