Closing Out our CenturyLink Puts
By Paul Price of Market Shadows
Back on September 17th Market Shadows shorted two contracts of the April 19, 2014 $32 puts on CenturyLink (CTL). The stock was selling for $32.39 back then. We received $2.30 per share in premium when we sold those April puts.
CTL has been higher, and lower since then, but has failed to rebound sustainably. As of 12:30 PM CTL was trading at $31.62. I am ready to call it a day on this one for a small profit.
We bought to close (BTC) at the asking price of $2.05 per share.
Time decay allowed us to book a small net gain of $50 on the two contracts despite the slight share price decline. This trade is now recorded on the closed-out transaction list.
See all Market Shadows’ previous option trades plus all currently open put positions by clicking here Market Shadows Virtual Put Writing Portfolio .
