We had sold one option contract on laboratory testing firm Quest Diagnostics (DGX) on Feb. 19, 2014, when the shares were trading for $52.47. This was recorded at the time in our Virtual Put Writing Portfolio.

We received $5.10 per share for selling the Aug. 16, 2014, $55 put. Today, with the options out of the money and the shares at $58.97, we closed out the position for the asking price of $0.60.

It’s likely that this option would have expired worthless next month but we are no longer enthusiastic about the company at current prices. Our timing was good on the front end of the transaction as DGX was near its 12-month low back in February when we sold the put.

Closing now is the conservative path in a choppy market. We netted a $450 profit on the trade. We freed up buying power that can now be redeployed into a new, more exciting idea.

Follow all our completed and open option trades by clicking here Virtual Put Writing Portfolio.