Trade Placed: April 2009

On today's afternoon dip, I got filled on the April 91 puts at .16 (the 90 puts I wanted to sell just didn't bring in enough premium). I feel comfortable on the way the market sold off then rallied to a positive close. I think that at least for the short term, the market wants to go higher. The margin requirement on this trade is higher than I normally like, but the trade off is that there is only 22 days left in the life of the option until expiry.

Index level: 120.80
Sell to open: 15 Apr 09 91 Puts
Credit received: .16
Initial Margin req.: $13,650.00
Commission: $18.75
Net credit: $221.25
Days to expiry: 22
Simple return: 1.62%
Yield: 26.89%
% to ITM: 24.67%
Probability of expiring ITM: 2.90%

Please view my disclosure on the bottom of this blog.