Sun, Sep 21, 2014, 9:10 PM EDT - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

Pfizer Inc. Message Board

  • fizrwinnr11 fizrwinnr11 Dec 26, 2012 11:12 AM Flag

    I earned 14.9% in 15 weeks while the underlying stock fell by 8%

    With the stock at $100.53, I bought back my 20 March 65 naked puts on BIDU for $37 apiece or $760 after commissions. These options had been sold for $160 each (3,170 after commissions) on Sept. 11 when the stock was at $109.44.

    Net profits after commissions amounted to $2,410, a nominal return of 14.9% for the 15-week holding period on cash margin requirements of $16,240.

    So why did the option go down so much when the stock itself fell? Because these were 65-strike naked puts and when they were originally sold, there was a little more than six months to go before expiration. Now there is less than three months to go and the stock price drop from $109.44 to $100.53 isn't nearly on pace for BIDU to be all the way down to $65 by the third Friday in March. So of course the option price fell precipitously which is money in my pocket.

    12/26/2012 10:20:57 Bought 20 BIDU Mar 16 2013 65.0 Put @ 0.37 -758.34

    Sentiment: Buy

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Here is a re-post of the original sale transaction on Sept. 11 which as usual was posted on this board in real time:

      09/11/2012 14:05:50 Sold 20 BIDU Mar 16 2013 65.0 Put @ 1.6 3,188.58

      Sentiment: Buy

      • 1 Reply to fizrwinnr11
      • Here is a re-post of the original sale transaction on Sept. 11 which as usual was posted on this board in real time:

        09/11/2012 14:05:50 Sold 20 BIDU Mar 16 2013 65.0 Put @ 1.6 3,188.58

        _____________________________________________________

        NO, LYING PINOCCHIO (yes, a redundancy). here's EXACTLY when you posted that transaction (one week AFTER the fact, not "real time"):

        BIDU replaces GE in the non-bank naked put-writing portfolio
        by fizrwinnr11 . Sep 18, 2012 3:30 AM . Permalink
        On Sept. 11 with the stock at $109.44, I sold 20 contracts of the BIDU Mar. 65-strike naked puts for $160 apiece. The contracts fetched $3,190 after commissions with cash margin requirements at my brokerage being $16,240. If the stock can simply remain over the margin-safe price of $73.15, the return if held to March expiration will be a nominal 19.0% which is at the pace of 38.0% for a year. With an almost-certain early out, the annualized return should be about 45% on this investment. Keep in mind that the strike price here is just SIXTY-FIVE.

        09/11/2012 14:05:50 Sold 20 BIDU Mar 16 2013 65.0 Put @ 1.6 3,188.58

 
PFE
30.40-0.18(-0.59%)Sep 19 4:00 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Genworth Financial, Inc.
NYSEFri, Sep 19, 2014 4:03 PM EDT
Hercules Offshore, Inc.
NasdaqGSFri, Sep 19, 2014 4:00 PM EDT