Monday, May 9, 2011

Closing Transaction (NPIP - 5/4/2011) - Abbott Labs (ABT)

After reviewing the remaining option premium for this naked put which is part of the NPIP, the decision has been made to close the position. Generally, I will close positions in this portfolio when the annualized return has fallen under 2%. The final profit/loss info is below:

12/27/2010 -- Sold To Open 1 ABT August 2011 $42.50 Put @ 1.5231
5/4/2011 -- Bought To Close 1 ABT August 2011 $42.50 Put @ 0.2066

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: N/A

Final Profit: 3.10%

Original Projected Annualized Profit: 5.54%

Final Annualized Profit: 8.83%

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