The Money Tree

Safely Generating Income in Retirement

Archive for March 29th, 2010

New Trade – MYGN

Posted by mounddweller on March 29, 2010

All,

I executed my trade in Myriad Genetics this morning.  The stock was bouncing all over the place at the open as was the option pricing.  One thing I didn’t note in my original write-up is that the options for MYGN are fairly thinly traded.  Thus, the bid/ask spreads are very wide.

Here’s the trade I entered:  I did a buy write on 300 shares (as opposed to the 400 I referenced in my last post) for a net debit of $24.25/share. 

The trade executed as follows:  Bought 300 shares MYGN at $24.68.  Sold 3 APR $25 calls at $0.55.

This makes my ROIC 2.22% if unassigned (0.55/24.68) and  3.53% if assigned ((25 – (24.68-0.55))/24.68).  Those aren’t bad numbers given there are only 19 left to APR expiration.

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