Sun Hung Kai Ltd Put Option

I wrote some Put options for SHK yesterday. With Strike $110, Expiry NOV 09, Premium $1.82

Reason for Entry

Fundamental: SHK is a pretty good company. Actually I had a list of 20 optionable stocks and within this list the company are all profitable and in my opinion is fundamentally sound. SHK is one of them. SHK pay about $2.3 dividend per year and show good earning and current ratio.

Technically: On the weekly chart, the share is close to the 30 week EMA. Which means the share is relatively undervalue. On the daily chart, the share show a good support at $110 level.

So with only 2 weeks to expiry, $1.82 per contact is pretty good premium to have.

Action: Write to open SHK PUT option NOV 09, Strike $110, with a premium of $1.82 per contract.

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