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Rolling Put Options Strategy Squeaker Trade Defensive Investing Stuck In A Range The Value Of A Plan More Put Selling

 

	JOHNSON & JOHNSON  (JNJ) - 2009 ONGOING EVALUATION & TRADE  The current strategy is selling naked puts near and at the money until I either accept assignment OR get assigned shares. Then I will turn to covered calls. Should the stock fall too low  making covered call selling impractical I will add to my stock position through selling naked puts to lower my overall cost.
ALL PORTFOLIOS INDEX U.S. STOCKS RETIREMENT PORTFOLIO CANADIAN STOCKS   CURRENT U.S. STOCK PORTFOLIO INDEX AT+T CLOROX COCA COLA INTEL CORPORATION JOHNSON & JOHNSON KRAFT FOODS MCDONALDS MERCK & COMPANY MICROSOFT NUCOR CORPORATION PEPSICO SPYDER ETF VISA EXXON MOBIL YUM! BRANDS   Should you find my strategy and ongoing evaluation of this trade of value I hope you will consider a tip for the time I spend detailing out this trade. I have set up a Paypal account for those who would like to donate. Thank you in advance. Remember, nothing on my site is financial advice. They are just my ideas and opinions. Investing is risky and losses can be large. Trade at your own risk. Read the terms of use     YEAR 1: 2009 - Trade Commenced Feb 26 2009 Goal for 2009: 8.5% (10 months) Strategy: Sell Naked Puts Until Assigned   Capital In Use At End Of 2009 53,500.00 Income Earned in 2009 (10 months) 4276.00 Return On Capital in 2009 (5 months) 7.9%
TRADE COMMENCED: Feb 26 2009

Looking at the below chart we can see that over the past 5 years this stock has traded in a range approximately between 70 and 60 dollars. During the fall of 2008 when the bear market began to maul stocks, JNJ fell below 50 dollars. I believe owning this company below $60.00 would be a good entry point.
Feb 26 09	52.44	Sold 5 Naked Puts Mar 50 @ .95			13.25			461.75	461.75
Mar 20 09	51.67	Expiration Day 5 Naked Puts Mar 50 Expired
Mar 23 09	51.90	Sold 5 Naked Puts Apr 50 @ 1.55			13.25			761.75	1223.50
Apr 17 09	53.75	Expiration Day 5 Naked Puts Apr 50 Expired
Apr 20 09	52.47	Sold 5 Naked Puts May 50 @ .85			13.25			411.75	1635.25
May 15 09	55.41	Expiration Day 5 Naked Puts May 50 Expired
May 18 09	55.50	Sold 5 Naked Puts Jun 55 @ 1.10			13.25			536.75	2172.00
Jun 19 09	56.09	Expiration Day 5 Naked Puts Jun 55 Expired
Jun 22 09	55.49	Sold 5 Naked Puts Jul 55 @ 1.00			13.25			486.75	2658.75
Jul 17 09	59.23	Expiration Day 5 Naked Puts Jul 55 Expired
Jul 20 09	59.06	Sold 5 Naked Puts Oct 55 @ .75 (I believe the stock is overvalued at this stage and I would like to pick up this stock for around the 55.00 strike. In order to receive a decent premium I moved to writing further out - this time October)			13.25			361.75	3020.50
Sep 24 09	60.77	Sold 5 Naked Puts Jan 55 @ .60			13.25			286.75	3307.25
Oct 1 09	59.79	Bought Back 5 Naked Puts Oct 55 @ .05			13.25			(38.25)	3269.00
Oct 1 09	59.79	Sold 5 naked Puts Nov 55 @ .30			13.25			136.75	3405.75
Nov 16 09	62.04	Sold 5 Naked Puts Apr 55 @ .95			13.25			461.75	3867.50
Nov 20 09	62.31	Expiry: 5 Naked Puts Nov 55 Expired
Dec 23 09	64.57	BTC 5 Naked Puts Jan 55 @ .04			13.25			(33.25)	3834.25
Dec 23 09	64.55	STO 5 Naked Puts Apr 60 @ .91			13.25			441.75	4276.00
END OF 2009 - $4276.00 / $53,500.00 = 7.99%
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