Saturday, 25 April 2015

Options Trade - Emerson Electric Co

On April 24, I sold a put in Emerson Electric. The trade:

Sold 1 EMR Put Dec 18 '15 $55 Put @ 3.30 ($11.20 commission + $0.01 SEC fee)

Days Held (sell date to expiry): 238

Net Premium: $318.79

Annualized Return = ($318.79 / ($5,500 - $318.79)) * 365/238 = 9.44%

The most likely outcomes of this trade are:

1. Shares are trading above $55.00 at expiration. I will get to keep $318.79 in net premiums.

2. EMR is trading below $55.00 at or before expiration and shares are assigned. I will receive 100 shares of EMR at a net cost of $51.81/share.

I've now have 8 open options; 7 puts and 1 call. 

1 comment:

  1. This Emerson electric co.'s share fall under KLSE stock analysis or SGX stocks analysis? I am little bit confused.

    ReplyDelete