New investment in the 200K insane returns short-term naked put-writing portfolio
With the stiock at $25.12, sold 100 HPQ Feb. 16-strike naked puts for $43 apiece. Net proceeds after commissions of $4,230. With cash margin requirements at Ameritrade being $20,500, the nominal return if held to expiration will be 20.6% which is at the pace of 31.7% annualized.
07/02/2013 10:23:31 Sold 50 HPQ Feb 22 2014 16.0 Put @ 0.43 2,114.26
07/02/2013 10:29:50 Sold 50 HPQ Feb 22 2014 16.0 Put @ 0.43 2,114.26
I'm still holding my 50 contracts of the 23-strikes for Jan. 2015. While I'm currently down by $12,500 on this investment, the stock is back up near $25 and likely to move higher given the coup in Egypt. This is another one of those investments where I find myself down early on but come out smelling like a rose in the fullness of time.
You don't really think that GG will be materially below $23 a share do you? The selling has been greatly overdone; the stock was going for almost twice that price not so very long ago. It will be me who gets the last laugh on this one.