FXI - Close Position

Written on February 20, 2009 – 12:44 pm | by admin

I had originally sold a Feb $24 strike against FXI, the China ETF, when it was above $27.  It was a small return but in 2 weeks, I didn’t think the markets could drop 15+%.  Today, FXI broke below $25 and is currently at $24.70ish.  Zecco has advanced option ordering and so I looked at what I would get if I closed out my position.  The current price was $23.88.  While $0.12 under my strike price, it gave me a positive return even after commissions.  I decided to take that offer and close out my position.  

I closed out the position basically to raise cash.  I have decided to not roll any of my positions that will be closed out in order to increase my cash holdings.  Things could get ugly here if the market doesn’t find a bounce.  

Buy: 100 @ $27.19 ($0 commission)
Net Investment: $2719.00
Initial Income: $345.00
Other Income: $-100.00 
Sold: 100 @ 24.83 ($0 commission) 

Return: $9.00 (0.37%, 4.47% Annual)

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