On the left hand side, I have post one of my trade opened last week.
Reason for entry:
1.Fundamentally speaking HSB (stock code 11) is a very good company which has make consistent profit with increasing EPS year from year. It also had a very stable dividend policy. With a current DPS of about $6 per share. If we get exercise on this one, we will be buying the share at $110 with a dividend yield of 5.4%p.a. (better than put it at the banks)
2. Technically HSB show a really good support at $110 and currently close to the 30 week Moving average. Which means it is good value at $110.
When talking to my option broker, I will say I am writing to open HSB put option with strike price of $110, expiry on Nov09, with premium of $2.68.
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