Filed under: Competitive Strategy, Citigroup Inc. (C), Options, Entrepreneurs
There has been little time to write lately because I have been wheeling and dealing in my investment world. However, I thought I would share one of the trades I did this week that seems like free money to me, and although the opportunity has faded a little I might do it again and you might want to examine this trade, too.
At the market open on Tuesday March 9, a good-til-canceled order filled — selling to open Citigroup Inc. (C) January 2012 ‘puts’ at a strike price of $7.50 — paying $4.05. This transaction is commonly called a “naked put”. The return on investment is 59% over the remaining 22-month period.
This is nuts because my break even position is $3.45 — 20 cents a share less than it was the time of the trade and 60 cents less than the $4.05 (ironic isn’t it) Citigroup is trading at now, as I type away.
Continue reading World’s Dumbest Market — Low Risk, High Reward
World’s Dumbest Market — Low Risk, High Reward originally appeared on BloggingStocks on Thu, 11 Mar 2010 14:20:00 EST. Please see our terms for use of feeds.
Permalink | Email this | Comments
