Trade Placed: Nov 2009

Today I took advantage of the increased volatility and decaying time premium and sold another Nov 1400 put for $1.20. I am also monitoring the Dec 1400 puts which mark for $5.15 - if my timing is correct and I can sell them as this downturn ends, I plan to close them out early and take 75% of the gain.

Index level: 1724.69
Sell to open: 1 Nov 09 1400 put
Credit received: 1.20
Initial Margin req.: $13,995.50
Commission: $1.25
Net credit: $118.75
Days to expiry: 23
Simple return: .85%
Yield: 13.47%
% to ITM: 18.83%
%Probability of expiring ITM: 2.23%
VXN level: 25.35%
Mmkt equivalent earnings @ 1.30%: $11.49



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