Today I took advantage of the rise in the index and closed out the NDX 1200 put for 1.15. I chose to close the trade because in 9 days it had earned app. 75% of the max profit, or $322.50, leaving $115.00 on the table. As I had said when I placed the trade, it was closer to the money than I generally liked, so by closing the trade I took the risk involved off the table, leaving the next closest strike to being itm the 1125 put which is currently 24% otm. Nice yield on the trade too!
Index level: 1470.89
Buy to close: 1 July 09 1200 put
Cost to close: 1.15
Initial Margin req.: $12,005.00
Commission: $1.25
Net debit: $116.25
Profit: $322.50
Days open: 9
Simple return: 2.69%
Yield: 108.95%
% to ITM: 18.42%
Mmkt equivalent earnings @ 1.55%: $4.59
Below is a current chart of the NDX as well as the remaining strikes for July 2009.
