The Money Tree

Safely Generating Income in Retirement

Archive for March 8th, 2014

New Trade – FDO

Posted by mounddweller on March 8, 2014

Fellow Traders,
I STO  2 FDO MAR $60 puts at $0.65 right before the close on Friday.  Reasoning is as follows…
(1) Good ROI, >1% with 2 weeks to expiration.
(2) 5% downside protection
(3) Stock is very oversold, has fallen for 7 straight trading days
(4) support at $60
Likely will close position early on any bounce higher.  With only 2 weeks to expiration the premium should erode rapidly especially with a bounce.
Here’s the 1-yr price chart:
BLOG - FDO 1 yr chart

Posted in Troy's New Picks! | Tagged: , | 4 Comments »