May 2009 Results:

Trade Placed: June 2009

On May 15th, I sold to open 1 NDX June 1050 put, 22.51% otm. I am still expecting the market to take a breather and decline somewhat and with only 34 days until expiry, I was also looking to lock in premium before it evaporated. The VXN still is not helping out, maintaining its place below 40 at 33.14. If the market does decline further as I expect, I will look to sell either another NDX put or several MNX puts at 1050 (105) or lower, depending if premiums jump or not.

Index level: 135.69
Sell to open: 1 June 09 1050.00 Put
Credit received: .22
Initial Margin req.: $10,502.50
Commission: $1.25
Net credit: $218.75
Days to expiry: 34
Simple return:2.08%
Yield: 22.36%
% to ITM: 22.51%
Probability of expiring ITM: 3.92%

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