Trade Placed: Nov 2009

On Friday Oct 23rd, at the close I sold 1 Nov 1400 put for .90 with 27 days until expiry. With time running out and premiums dropping, I wanted to squeeze out some premium while I could. This is typically less premium than I would bother trading for, but with the VXN potentially running lower or remaining flat and more money coming in off the sidelines to chase the market into year end, I placed the trade.

Index level: 1753.63
Sell to open: 1 Nov 09 1400 put
Credit received: .90
Initial Margin req.: $13,995.00
Commission: $1.25
Net credit: $88.75
Days to expiry: 27
Simple return: .64%
Yield: 8.69%
% to ITM: 20.17%
%Probability of expiring ITM: 1.68%
VXN level: 22.62%
Mmkt equivalent earnings @ 1.30%: $13.49

Please view my disclosure on the bottom of this blog!!