The Money Tree

Safely Generating Income in Retirement

Archive for January 2nd, 2014

2014 – First Trade

Posted by mounddweller on January 2, 2014

Fellow Traders,

I executed my first trade of the year on the first trading day of the year.  I think that is a first for me.  Yet another first is that the trade was in Clorox (CLX), a stock I had not previously traded.  OK, that’s enough ‘firsts’ for one post.

Here’s the trade I executed: STO 1 FEB CLX $87.50 put at $1.50.

This trade idea came courtesy of my investing friend and mentor Teddi at www.fullyinformed.com.

This trade has the potential to generate a return of 1.63% with a holding period of 51 days.  That equates to an annualized return of 11.66%.  That is just under my target return of 12%.  However, CLX is a lower risk trade so I feel comfortable accepting the slightly lower return.

Here is my trade plan:

BLOG - CLX Trade Plan

If the market sell-off continues for the next couple of days I’m sure more trades will begin to pop up on my radar screen.

Regards,

Troy

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