The SPDR S&P 500 ETF (SPY) Dec12 85.00 Put was bought back today and the position was closed. All prices include IB commissions.
The put was initially sold for $1.64, excluding commissions, and since the premium declined by more than 50% to $0.80, I decided to buy it back, which increased the annualized return from 2.11% to 4.05%.
Position Summary
| Cost Basis | $8,500.00 |
| Net Profit | $81.95 |
| Percent Return | 0.96% |
| Annualized Return | 4.04% |
| Days Held to Expiration | 87 days |
Trade History
| Date | Stock | Description | Transaction | Status | Stock Investment | Income Generated |
|---|---|---|---|---|---|---|
| 1/24/2012 | SPY | CSP Margin Used | CSP 100 SPY @ 85.00 | ($8,500.00) | ||
| 1/24/2012 | SPY | Initial Put Option | STO 1 Dec12 85.00 Put @ 1.63 | Closed | $162.97 | |
| 4/20/2012 | SPY | Buy Back | BTC 1 Dec12 85.00 Put @ -0.81 | ($81.02) | ||
| 4/20/2012 | SPY | CSP Margin Returned | CSP 100 SPY @ -85.00 | $8,500.00 | ||
| 4/20/2012 | SPY | Net Cost/Profit-Loss | ($8,500.00) | $81.95 | ||
| DTE | 87 | Percent Profit-Loss/Annualized | 0.96% | 4.04% |
