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  • chrt13sezzheaintkowshit chrt13sezzheaintkowshit Oct 4, 2011 5:51 PM Flag

    Closeout of BAC Nov. 5-strike naked puts

    ASTOUNDING RETURNS!!!

    Sold 200 BAC Nov. 5-strike naked puts for $23 apiece. Net proceeds after commissions of $4,465. The cash deposit required was $14,800 and so if the margin-safe price of $5.60 holds (the stock is $8.05 now), the nominal return will be 30.2%. With 12.0 weeks to go to expiration, the return would be 2.52% per WEEK.

    These kind as astounding returns given the 30% downside safety to the margin-safe point are just too great to overlook. By the time January rolls around, BAC will be one of my BEST profit-makers in the naked put-writing portfolio. I envision about 20K in profits on an average daily investment of about 40K for the 14 months from mid-November 2010 until the Jan. 2012 expiry. The nominal return will be about 50% and the annualized return over 40% if the stock holds above the $5.60 margin-safe point. I am now short 1,200 BAC naked puts with 800 of them being 4-strikes and 400 of them being 5-strikes. Only 200, however, are beyond November expiration which is only twelve weeks away.




    08/29/2011 10:08:36 Sold 60 BAC Nov 19 2011 5.0 Put @ 0.23 1,333.97
    08/29/2011 10:08:36 Sold 6 BAC Nov 19 2011 5.0 Put @ 0.23 134.09
    08/29/2011 10:08:36 Sold 6 BAC Nov 19 2011 5.0 Put @ 0.23 134.09
    08/29/2011 10:08:36 Sold 39 BAC Nov 19 2011 5.0 Put @ 0.23 871.63
    08/29/2011 10:08:36 Sold 55 BAC Nov 19 2011 5.0 Put @ 0.23 1,229.22
    08/29/2011 10:08:36 Sold 4 BAC Nov 19 2011 5.0 Put @ 0.23 89.39
    08/29/2011 10:08:37 Sold 4 BAC Nov 19 2011 5.0 Put @ 0.23 89.39
    08/29/2011 10:08:37 Sold 6 BAC Nov 19 2011 5.0 Put @ 0.23 134.09
    08/29/2011 10:08:37 Sold 10 BAC Nov 19 2011 5.0 Put @ 0.23 223.49
    08/29/2011 10:08:37 Sold 10 BAC Nov 19 2011 5.0 Put @ 0.23 223.49

 
PFE
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