Another Monday, another vaccine announcement. We reached another all-time high in our portfolio on the favorable news and one of our put option contracts (Neurocrine Biosciences, NBIX; expiration: 18DEC2020, strike $75) closed on a standing buy order when the market opened; another contract (Chewy, CHWY; expiration 18DEC2020, strike: $50) closed as trading ended due to a similar standing limit order.
Early in Monday NBIX was up more than 3.5% and closed up 5.5%. Our option contract closed for $50.69 when the strike price was 19% below the market price, $92.4. With four weeks yet till expiration, I am glad to have the capital available to earn higher returns or find more promising opportunities. We netted $48.61 on NBIX trade that was active for only five days. On our $7,500 at risk we earned 0.6% or 47.3% on an annualized basis.
The CHWY trade was held longer, 14 days, and earned $57.62 on $5,000 at risk or 1.2%, 30% annualized. CHWY closed at $69.27; 28% from our strike price with four weeks until expiration. I actually sold another CHWY put option contract before this contract closed this afternoon with a week further until expiration and 21% from today’s close, $55. I am glad close this contract at $0.25 per share after closing an identical contract on November 19th for $0.45 per share.