Using the Option Search Engine
on this site Troy, from The Money Tree
option web site, uncovered a great potential option trade yielding over 2% income per option sold in 23 days.
The trade is a Naked Put (NP) on APC - Anadarko Petroleum Corporation. APC has a market cap of 19 billion, trades at a 21 PE with EPS of 1.87 a share.
Since the Naked Put trade is over 18% out of the money, with 23 days left till expiration the risk of assignment should be low. This in turn makes the risk/reward very favorable that the option should expire worthless and the seller of the NP should retain all the premium.
Here are the details of this potential trade:
Option Type: Naked/Cash Secured Put - See a NP at the $32.50 strike for .68
Stock Price: 39.60
Strike Price: 32.50
Return on Investment: 2.03% with 23 days till expiration
Option Out of the Money: 18.46%
Downside Protection: 20.12%
To find more trades like these check out the option search engine on this web site by clicking here.