More Eaton Puts
23 August 2008
I still like Eaton and I am willing to buy more at 70. However, the current price of Eaton is around 73. Therefore, I sold the September put on Eaton with a strike of 70 dollars today for 1.45 per share. These puts were sold naked to open my position. Should Eaton go below 70 dollars per share, my plan is to take assignment on the puts and keep the stock for the long term. However, I might hedge my ownership in the stock by selling long term calls against the stock.
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