Friday, March 19, 2010

Equity put option written

This morning I wrote an equity put option. Details are as follows:

Underlying: China Construction Bank (939)
Strike price: $5.94
Market price: $6.24
Annualised premium: 8.06%
Term: 1 month

China Construction Bank is a company that I would be happy to buy for the long term. In fact, I came close to simply buying the shares directly.

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