The Money Tree

Safely Generating Income in Retirement

Weekly NP Strategy – NOV 4 Exp.

Posted by mounddweller on November 4, 2011

Fellow Traders,

A quick post to update you on the one trade I recommended last week for our Weekly NP Strategy.  You’ll recall out of the 127 selections offered by our screening criteria only 1 was of interest to me.  That was the Newmont Mining (NEM) $60 put.  At the time of selection NEM was trading at $66.06 and the NOV4 $60 put was at $0.30 bid.

Today NEM closed at $69.38.  Thus our $60 put finished well OTM.  This trade gave us a gross (before commissions) ROIC of 0.5% with an 8 day holding period.  Annualized our ROIC is 22.81%.

I’ll be back later this weekend with a new round of possible trades from our other naked put trading strategy, the Deep OTM NP Strategy.  We’ll be looking at the regular monthly puts with a November 19 expiration.




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