Revving up a CMI Put Sale

CMI  logoBy Paul Price

Our Market Shadows Virtual Value Portfolio sold our CMI shares on March 12, 13, at $119.58 while booking a 27.4% gain plus dividends. With the stock now back to $113.45, we’re going to SELL one CMI Jan. 18, 2014, $110 strike price PUT for $11.00. 

Our ‘if put’ risk is to be forced to buy 100 shares at a net cost of $110 – $11 = $99 /share. (“If put” means the put is exercised and we are forced to buy the stock at the strike price of $110.) That would represent a $20.58 per share discount to where we sold our shares at $119.58 just 10 days ago.

Click to enlarge:

CMI  put price   

Our Virtual Put Selling Portfolio now looks like this…

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 Virtual Put Selling Portfolio - as of Mar. 22, 2013

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  1. [...] the meantime, however, Paul has sold a put in SLB, CMI [...]

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