Monday, April 26, 2010

Equity put option written

This morning I wrote an equity put option.

Details are as follows:

Underlying: Sinopec (386)
Strike price: $6.23
Market price: $6.48
Annualised premium: 10.11%
Term: 1 month
Effective purchase price if hit: $6.18

Sinopec 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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