Sunday, July 17, 2011

Teva Options Expire

The July $47.50 Teva puts recently sold by CCI expired worthless this weekend.

This results in over a 2% gain for this lot of Teva stock on this transaction. This is the fourth time the sale of puts has earned money while the stock stagnated.  As shown via the spreadsheet below, this strategy of naked put selling on Teva has now yielded nearly 10% this year.
Teva Performance  

CCI remains long one lot of Teva at a cost of $48 which is about where it closed trading on Friday.

Earnings announcement is planned for 7/27.
CCI may look to get long a second lot of Teva, perhaps via calls, prior to that date.

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