SSO - Close Position


Written on January 5, 2009 – 10:41 am | by admin

I have decided to close one of my four SSO positions.  There are a couple reasons for doing this:

  1. I can close it at a profit
  2. I believe we will go down again
  3. SSO is too large a position
  4. Its leveraged (see above)

I will give you the details of the overall transaction.  I am showing you the details of a position that will yield a profit.  I am not using a FIFO/FILO method to this.

Buy: 100 @ $28 ($7 commission)
Net Investment: $2625.58
Sold Nov08 $30 @ $1.85 ($3.58 commission)
Sold Dec08 $30 @ $0.60 ($3.58 commission)
Received Dividend of $0.05911 
Sold: 100 @ 28.21 ($7 commission) 

Return: 9.36% over 2 option periods (71% annually)

Tags: ,

You must be logged in to post a comment.