The Investment Road to Freedom

June 23rd, 2013 at 3:01 pm

Option Expiration Week

June 21st was option expiration day and it was a day I was looking at very closely.  On May 3rd I sold (sell to open) my first ever cash secured put and Microsoft (MSFT) would be the stock.  With the stock at $33.38 I sold the June put with a $32 strike price and received $40.01 after commission. If the stock was below $32 on expiration day I would have had to purchase 100 shares at $32 but as the stock closed at $33.26 my option expired leaving me with the $40.01 and my capital invested returned. The days and hours leading up to expiration Microsoft and the market as a whole had quite a fall with MSFT dropping from around the $35 mark to the current range. The fall on Friday was not significant enough for me to want to buy back the put. For risking $3200 for 49 days I made 1.24%. That’s not to bad and now I have my $3200 back and am ready to sell my next put. Below are my current candidates for the next put

  • Microsoft
  • Coca-Cola
  • Ford
  • General Electric
  • Safeway
  • Intel
-

Comments are closed.