Archive for the ‘Risk Management’ Category

SLV CALLS

Posted: March 4, 2012 in Risk Management, Trades
Tags: , ,

Writing 9 16mar12 36.0 calls in the morning on my 900 shares at 32.43, easy money for me


Pheww got out of my ZNGA Call at .85, for a loss of only -$26.6 could have been much worse, it ran today,
but pulled back in the late trading, I’m happy with this loss, I learned from
this.  In addition I added to my ONTY position 100 @ 8.74 for an average cost
of 8.59, I also covered this for the 17Feb12 9.0 at .50.  ONTY hit 9 today, but
could stay up, I would love this to get called out on expiration, if this
happens as I hold already a Mar call at 9, I would likely purchase another 200
and 1 more Mar Call possible a 10 strike or a 8 for an ITM call as I would be
up already and could reap from the high premium it is offering.  Overall that
would be about a 15-25% return depending on the contract prices at that time.  Feel free to see my C2 Portfolio and trade log using the link to the right.

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