The Money Tree

Safely Generating Income in Retirement

PBR – New NP Trade

Posted by mounddweller on July 19, 2011

Fellow Traders,

Please recall in my post this past weekend I had mentioned that I wanted to re-enter my NP trade on PBR.  Yesterday, I had the opportunity to do just that.  Below are the details of that trade.

As you can see I sold 3 AUG $31 puts at $0.58.  If all goes well and the puts expire OTM I will have a ROIC of 1.77% which annualized is 20.14%.  Find a way to do that every month and you’ll be doubling your money approximately every 3 1/2 years!






2 Responses to “PBR – New NP Trade”

  1. Jeff said

    Hi Troy,
    This is a nice, conservative trade thtat is working nicely for you so far.
    I noticed you don’t include commission costs when calculating your ROIC and Annualized ROIC.
    Wouldn’t including them make your potential results more accurate?

    • mounddweller said


      Look again. My gross amount is $174.00. My net, after commissions is $164.25. My ROIC is based on the $164.25 and the requisite capital in the amount of $9,300.00.

      I always calculate my ROIC and annualized returns, net of all costs.


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