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Strategies & Market Trends : Contrarian Investing

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To: OldAIMGuy who wrote (63)9/13/2006 10:46:38 AM
From: pcyhuang  Read Replies (1) of 4080
 
Tom Veale, Welcome to the board of Contrarian Invesing!

Regarding CHS, on Aug. 25 I disoovered the stock as being qualified as a candidate for my brand of contrarian investing.
I sold open the Oct. 17.50 put for 1.15.

Message 22751444

The margin required (using Treasury bill yielding 5%) was $360 per hundred share. This works out to be 3.1% for 55 days or 20.27% per annum return on capital if the option expires worthless. The worst possible outcome is that I will have bought the stock at $16.35.
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