Earlier this week, I sold my very first Put. And today, I sold my second.
I sold puts in SNC-Lavalin and General Mills because their share prices have dropped some. I would have liked to sell puts during the recent short-lived correction, but I was approved for put options trading after the market ‘rebound’.
Today’s options trade:
Sold 1 GIS Put Apr 17 ’15 $47.50 Put @ 1.08 ($11.20 commission + $0.01 SEC fee)
My net premium is $96.79.
The most likely outcomes of this trade are:
- Shares are trading above $47.50 at expiration. I will get to keep the $96.79 in net premiums.
- GIS is trading below $47.50 at or before expiration and shares are assigned. I will receive 100 shares of GIS at a net cost of $46.53/share.