May options trades and expiration: PPG, SYY, GD & more!
This week was May options expiration and I had the following options positions expiring:
- AFLAC [[AFL]] – The May 17.5-strike puts I sold against AFL last month expired out-of-the-money (OTM) for a four-week net return of 4.1%.*
- General Dynamics [[GD]] – The May 30-strike puts I sold against GD on 3/5/09 expired OTM for a ten-week net return of 4.3%.*
- Genuine Parts Co. [[GPC]] – The May 25-strike puts I sold against GPC on 3/18/09 expired OTM for a nine-week net return of 2.7%.*
- Integrys Energy Group [[TEG]] – The May 22.5-strike puts I sold against TEG on 3/2/09 expired OTM for an 11-week net return of 8.1%.*
- PPG Industries [[PPG]] – The May 35-strike puts I sold against PPG on 1/30/09 expired OTM for a 15-week net return of about 10%.*
- Republic Services [[RSG]] – The May 15-strike puts I sold against RSG on 4/8/09 expired OTM for a 5-1/2-week net return of about 2%.*
- Sysco [[SYY]] – The May 20-strike puts I sold against SYY on 4/15/09 expired OTM for a one-month net return of about 2%.*
This wraps up another very profitable options expiration. June and July expirations should be pretty good as well, as I have a number of short option positions (both calls and puts) expiring then, most of which are currently well out of the money.
Now I’m increasingly looking to add short options positions that will expire in the August to December time frame. I’ve been waiting for a market pullback, and it appears there may be some opportunities soon.
* As always, the return on “cash secured” put sales was based on the premium received from the sale of the options (minus commissions) against the unmargined capital set aside to pay for their possible assignment (i.e., my being put the shares of the stock).
