The Money Tree

Safely Generating Income in Retirement

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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4 Responses to “2014 – First Trade”

  1. Tommy Brown said

    Troy
    Looks good after today’s (1/8/14) sell-off on CLX. With earnings on 2/4/14, did that have an impact on your decision to trade CLX? BTW – VISIONS says that the probability of assignment is 10.94%.
    -Tommy

  2. mounddweller said

    Tommy, thanks for stopping by and reading my blog! No, earnings on 2/4 did not have a bearing on my decision to do this trade. One of the things I’m starting to learn from Teddi is that if you go into the trade with a plan which considers all possible outcomes then you don’t need to fear company announcements, surprise news events, etc. If something happens just execute your plan. Regards, Troy

  3. Hi, i read your blog from time to time and i own a similar
    one and i was just wondering if you get a lot of spam feedback?
    If so how do you reduce it, any plugin or
    anything you can suggest? I get so much lately it’s driving me insane so any support
    is very much appreciated.

    • mounddweller said

      I use Askismet. Can’t tell you anything about it though. It came preloaded with my wordpress blog. It is very good at catching spam.

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