Initial Transaction - Jack In The Box (JACK) (9/29/2009)

At the end of September, I decided to open a new cash-secured put position in Jack In The Box, a California based fast food chain. The company owns both the Jack In The Box burger chain as well as the Mexican fast food restaurant, Qdoba. I decided to open this trade after considering it for about 3 months. Although I have never been to a Jack In The Box, I was introduced to the Qdoba chain in college. This restaurant is similar to another Mexican fast food chain which more people are familiar with, Chipotle. Jack In The Box is different from other fast food chains, in that it changes its menu quite often, in an effort to find menu items that have greater appeal. I chose to invest in the company at this point in time mostly for technical reasons, as it is currently floating above a key point of support at $20. The stock has not closed below this point since the market crashed in March. As such I don't foresee too much downside risk. The new profit/loss info is below:

9/29/2009 -- Sold To Open 1 JACK November $20 Put @ 0.95

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: N/A

Possible Max Upside: 4.75%

Annualized Max Upside: 32.71%