Risk Management for Week 2

Posted: February 12, 2012 in Risk Management, Trades
Tags: , , , ,

Alright Im a little worried about the upcoming earnings from
Zynga.  This being the first earnings from them there is no telling how
this will react to positive or negative news, so I am going to close my Feb
Short Call on Monday for a likly loss of between $10-$30.  Its a small
loss and worth it given my stupity getting into this situation. 

Stock / Option

Shares / Contracts

Avg PPS

Last

Profit / Loss

Notes

ZNGA

100

12.99

13.33

+$32

 

17Feb12 14.0 C

-1

0.6

0.8

-$20

Closing

18Mar12 14.0 C

-1

1.14

1.3

-$16

Keeping for $114 Downside
Protection

Stock $32   +  17Feb12 14 C (-$20)    +   18Mar12 14 C (-16)   =   -$4  Total with $114 downside protection remaining after trade  

 

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