Refining Our Virtual Put Selling Portfolio

07/10/2013

Refining Our Virtual Put Selling Portfolio

We opened a new put position late Wednesday afternoon. We sold a HollyFrontier (HFC, $40.06) September 2013, $40 strike price put for $2.65 per share. HFC shares had already retreated from a March high of $58.70.

Our break-even price becomes $40 - $2.65 = $37.35 per share. It takes us down to a level that has shown solid support since last summer.

Maximum profit is 100% of the $265 per contract we received upon sale of the put. We will keep this full amount if HFC closes at $40 or higher on Friday Sep. 20, 2013.

If HollyFrontier closes below $40 on expiration date we will be forced to buy 100 shares at a net cost of $37.35 /share.

See full details on all open and closed option positions here.

Jul 10, 2013 12:00:00 AM | Appears on main page, Options, Value Investing

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Ilene

I'm editor at Phil's Stock World, and editor for Stock World Weekly. My background is in the biological sciences, and law. After a brief career in the legal field, I changed directions and am now working as an editor, and very much enjoying my experiences in the editing world.

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07/10/2013