Archive for the ‘Lessons’ Category

SSO - Position Update

Friday, February 13th, 2009

This morning I sold part of my etf position in SSO that I had bought at $21 & $22.  I sold the 7 shares I bought yesterday at the day's low around $21.  The market wasn't acting the way I thought it would (rally from the start, it actually looks ...

DRYS - Close Position

Saturday, January 31st, 2009

Thanks to some adivce from covered callers, I dumped my DRYS position after its 20% fall on Thursday.  I bought my $10 strike back for $1 and sold my shares at $8.865. Bought 300 DRYS @ $11.95 ($7 commission) Sold Feb $10s @$2.60 ($10.75 commission) Bought Feb $10s @$1.00 ($10.75 commission) Sold 300 DRYS ...

Hedging

Wednesday, January 14th, 2009

As you may know, I puchased a long dated SPY put (Sep $80) a week or two ago for $6.20.  I decided to do this because the biggest thing I learned from all the turmoil in the last year is that never be unprepared for a market catastrophe.  To me this ...

UYG - Position Update

Tuesday, January 6th, 2009

Today I had my first decision on whether to sell the near month option or go out to February.  I currently hold 200 UYG.  If I were to sell the Jan $7 for $0.15 I make nearly nothing after commissions.  If I sell the Jan $6 and get called, I ...

Cash and Hedging

Tuesday, January 6th, 2009

I am still skeptical of this rally and the fact that things are better.  I still don't see any help for housing or the consumer that is upside-down on their house (not that there should be any).  Until there is a housing fix or another earth-shattering plan, I am going ...

Inflated returns?

Wednesday, December 10th, 2008

I've recently joined a yahoo group that discusses the covered call strategy. Our most recent discussion was about how to calculate returns for a position. They way I currently do it was very different than the way the majority of the people in the discussion did it. The ...

DIG - Open/Close Position

Monday, December 8th, 2008

Today I attempted to open a position in DIG.  I purchased 100 shares near the end of the day at 27.87.  I was trying to sell the $23 strike for $5.70 which would have yielded 2.34% or 31% annually.  My purhcase was on the little bump around 2:55 CST time.  ...

Lessons Learned - Option Assignment

Thursday, December 4th, 2008

Wednesday 12/3 was the ex-dividend date for BAC.  On Monday and Tuesday I sold some deep in the money calls ($2.50 strike) assuming that anyone buying these would not be exercising them on Tuesday for the dividend since the 2.50 strike had no premium and it would be just like ...