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Pfizer Inc. Message Board

  • fizrwinnr11 fizrwinnr11 Jan 4, 2013 10:48 AM Flag

    New investment in the quarter million dollar all-LEAPS naked put-writing portfolio


    By virtue of having earned 19K in the naked put portfolio over the last two sessions, I have freed up that much in additional margin availability. I just put that availability to use by executing the following transaction:

    Sold 20 BIDU 65-strike naked puts expiring in Jan. 2014 for $320 apiece. Net proceeds after commissions of $6,380 on a required cash deposit of $19,400. The nominal rate of return if the $73 margin-safe price holds and the investment is held to expiration is 32.9% for 54.2 weeks. The annualized return is an amazing 31.5%. It's a truly amazing return given the safety involved in a 65-strike naked put with the stock at a depressed $102.92. This dominant Chinese search engine is one of the fastest-growing compaies this size in the world; earnings are growng much faster than AAPL. How fast? It earned $3.02 per share in 2011, is expected to produce $4.75 in 2012 and then six bucks a share in 2013. The 2014 consensus forecast is in the $7.75 area.

    I consider myself to be one of the foremost experts in the nation in this type of investing and almost nobody can match my actual results in non-crash markets.

    01/04/2013 10:30:34 Sold 20 BIDU Jan 18 2014 65.0 Put @ 3.2 6,381.51

    Sentiment: Hold

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