I opened another cash-secured put position in GE today, as a result of its quite sharp decrease in price over the past few days. I believe that it is being dragged down with the financials yet again, unfairly in my opinion. The stock has decreased 19% from 14.53 on May 9 to 11.75 today. I was able to sell an $11 put for a pretty good price which would set my cost basis at about $10.60, a price not seen since the beginning of April. Additionally, the stock yields about 3.8% at this price which is pretty good. This also complements my July $12 CSP which would give me two entry points. The performance metrics are below:
5/27/2009 -- Sold To Open 1 GE June $11 Put @ 0.45
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Put Sale Profit: $45.00
Downward Movement Required (Put Sold When GE@11.75): 6.8%
Possible Max Upside: 4.09%
Annualized Max Upside: 49.77%
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