My October options expired last Thursday leaving me open to a new trade. On Thursday BHP closed at $45.23 - well above my $43.01 strike. Today it was at $43.40 when I had my order filled for some $43.51 Nov expiry BHP puts. I received a $1.11 premium on 28 contracts, and need to wait 23 days for them to expire. But I have already received the $3108, representing a 2.54% return in 23 days. Annualised, that would come in at a 40% return.
It was tempting to write another $43.01, but the premiums were around the 80-85c mark, so I took the extra 20c in premium, at the risk of paying 50c extra if I'm exercised. If the price was a little lower today, say $43.20, I would have likely written the $43.01 again. Here's the chart so you can see the last few day's price action. I highlighted the expiry last Thursday
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