Recent Transaction
This morning I set a limit order to buy to close my put option on Archer-Daniels Midland (ADM). I was able to purchase the put option back for $0.33 or $33. I originally sold the put option in September at the $26 strike price and received after commissions $81.01 in option premium. After buying to close the option I received a total of $40.03 on the trade for a return of 1.54%. This is equal to a 7.50% annualized return.
The main reason that I closed the position is that I feel there's much better options available in this market with the recent pullback. I'm a little worried about the dividend growth for ADM being depressed for the next few years and so I didn't want to lock in another 100 shares. By closing the position that frees up the $2,600 that was being held to back the put option in case it was exercised. Since I recently transferred some more capital to my FI portfolio I'm sitting on a good chunk of cash to be able to make at least 4 purchases and possibly more depending on how I want to put the money to work.
I've updated my Option Summary page to reflect this change.
The main reason that I closed the position is that I feel there's much better options available in this market with the recent pullback. I'm a little worried about the dividend growth for ADM being depressed for the next few years and so I didn't want to lock in another 100 shares. By closing the position that frees up the $2,600 that was being held to back the put option in case it was exercised. Since I recently transferred some more capital to my FI portfolio I'm sitting on a good chunk of cash to be able to make at least 4 purchases and possibly more depending on how I want to put the money to work.
I've updated my Option Summary page to reflect this change.
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