Good morning, we are pleased to report that today we sold the September 2009 series PUTS with a strike price of $22.50 for $1.75 per contract (UEEUX). U.S. Bancorp (USB) appeared to be dramatically overbought so we purchased these PUTS for $1.00 per contract (UEEUX) on 10th August 2009.
We had intended to hold on to these contracts with the view of making 100% profit, but a profit of 75% in one week was just too tempting for us to resist so we grabbed the cash and returned to the sidelines.
Our attention may well switch to the Bank of America next, which could be a possible candidate for a hit and run options trade so stay on your toes and drop in now and again to see what we are trading and why we think it will be profitable.
US Bancorp has a market capitalization of $40.92 billion with 1.91 billion shares outstanding, a P/E ratio of 26.02 and closed down $1.09 today at $21.40. US Bancorp trades on the NYSE under the symbol of USB.
Your thoughts are of course most welcome.
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Over on our silver site we also closed our PUT Options on Silver Wheaton Corporation for a profit of 60% which we had purchased two weeks earlier, this was a rough ride clearly demonstrating just how volatile options trading can be. So please don't put too much into any of our ideas as it is a dangerous space to be trading in.