Last month's equity put option over the Hong Kong Tracker fund (2800) expired unexercised.
Once again, I have rolled the contract forward for another month, this time using China Construction Bank (939) rather than the Tracker fund. However. I have been less aggressive and used a strike price a bit further out of the money and accepted a smaller option premium as a result. The reason for using a specific stock is that the premium offered was materially higher than the premium on the Tracker fund.
Details are as follows:
Underlying: China Construction Bank (13)
Market price: $5.81
Strike price: $5.47
Valuation date: 17 September
Maturity date: 21 September
Implied yield: 10.24%
Net purchase price if exercised: $5.43
If I get hit I will have effectively purchased the shares at about a 6.5% discount to the prevailing market price.