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Ending Our Quest A Month Early

By Market Shadows
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Ending Our Quest A Month Early

We closed out our only August Position in the Virtual Put Writing Portfolio. Quest over. 

By Dr. Paul Price of Market Shadows

Market Shadows Virtual Put Writing Portfolio had sold one option contract on laboratory testing firm Quest Diagnostics (DGX) back on Feb. 19, 2014, when the shares were trading for $52.47.

We received $5.10 per share for the Aug. 16, 2014, $55 put. Today, with the shares out of the money at $58.97, we closed out the position for the asking price of $0.60.

DGX Put close out for MS

It’s likely that this option would have gone on to expire worthless next month but we are no longer enthusiastic about the company. Our timing was good on the front end of the transaction as DGX was near its 12-month low back in February.

Closing now is the conservative path in a choppy market. We netted a $450 profit on the trade. We freed up $5,500 in buying power that can now be redeployed into a new, more exciting idea.

DGX put close-out chart

Follow all our completed and open option trades by clicking here Virtual Put Writing Portfolio.

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Note: The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither PSW Investments, LLC d/b/a PhilStockWorld (PSW) nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither PSW nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance, including the tracking of virtual trades and portfolios for educational purposes, is not necessarily indicative of future results. Neither Phil, Optrader, or anyone related to PSW is a registered financial adviser and they may hold positions in the stocks mentioned, which may change at any time without notice. Do not buy or sell based on anything that is written here, the risk of loss in trading is great.

This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only intended at the moment of their issue as conditions quickly change. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

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