Friday, 2 September 2016

Options Trade - Sold a Put in VOD

On September 1, 2016, I sold a put in VOD. 

Sold 1 VOD Put Apr 21 '17 $30 Put @ $2.00 ($11.20 commission + $0.01 SEC Fee)

Days Held (sell date to expiry): 232


Net Premium: $188.79


Annualized Return = ($188.79 / ($3,000 - $188.79)) * 365/232 = 10.6%

The most likely outcomes of this trade are:

1. Shares are trading above $30.00 at expiration. I will get to keep $188.79 in net premiums.

2. VOD is trading below $30.00 at or before expiration and shares are assigned. I will receive 100 shares of VOD at a net cost of $28.11/share.


I would feel very comfortable buying shares of VOD at $28.11.

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