Raised Our Batting Average to 0.893
By Paul Price of Market Shadows
Two More Option Expirations Boosted Profits. There was no drama this afternoon and thus no need to roll or BTC (buy to close).
Market Shadows Virtual Put Writing Portfolio can now take official credit for a couple of May expirations. We were short one contract of Lab Corp of America (LH) May $90 put, plus two contracts of the Life Time Fitness (LTM) May $45 puts.
We sold to open the LH $90 put back on Dec. 11, 2013, for $450. Lab Corp finished at $99.34. We now show the gain as a closed-out transaction.
Our pair of LTM May $45 contracts also expired easily. Life Time closed at $49.23 today. We pocketed 100% of the $331 premium received back on Nov. 1, 2013, without needing to buy any stock or to close out the options.
We cranked up this put writing portfolio in January of 2013. Since then we’ve had 25 winners against just three losses on closed-out trades for an 89.3% win percentage. We’ve posted option profits twice while using LH and LTM as underlying securites.
Our cumulative net profit has crept up to $16,469, accrued during a period just short of 16.5 months.
We’re quite pleased with our currently open positions and looking forward to the passage of time. We added one new short put position today Back to the well with Cognizant.
