Posts Tagged ‘Options’


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.
Advertisements

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  

 


This being my first post, Ill just recap my reasoning for creating this blog and a little bit about my experiance and my current holdings.  I am a Section Chief in the US Army, and will be retiring in a couple of years.  Army pay has never and will never provide me with the financial stablity long term that I desire. I began educating my self in the investing basics back in 2007, so I am a newbie still, with alot yet to learn, but I have been, from books and mistakes throughout the years.  My goal is not to make the one big play and get rich from it, but rather generate income to grow my portfolio and provide a better life in the future for my family.  I have gone through a few different investment strategies over the years, from Day trading with Tim Sykes, which does work quite well if you have the time throughout the day, then to my second favorite Dividend Investing in value and growth stocks, mainly the blue chips, RIET’s, and MLP’s.  This strategy was very profitable for me, but doesnt fit into what I like to do as it is a long term non-active investors strategy and I like to have my finger on the pulse of the market.  Covered calls(C2) I have been researching for about 6 months and have been trading options for just over a year.  I began my C2 Investing this week and decided a blog may be a way for me to be more acountable for my actions.  So here is my actions for this week, they were not perfect and mistakes were made and I will talk about them later.  

  • Bought 100 ONTY
    • Sold 1 17Feb12 9.0 Call ($64)
    • Sold 1 16Mar12 9.0 Call($204)  
        • Dangerous Naked Call, I dont see a catylist but this is a mistake and could cost me.
      • Total Income ONTY $268
  • Bought 100 ZNGA
    • Sold 1 17Feb12 14.0 Call ($60)
    • Sold 1 16Mar12 14.0 Call ($114)
        • Dangerous Naked Call, with earning coming up this is Bad, I will watch this one closely
      • Total Income ZNGA $174
  • Bought 100 VVUS
    • Sold 5 17Feb12 15.0 Call ($100) 4 Naked Call not concerned about it rising before exp.
    • Sold 1 16Mar12 13.0 Call ($268)
      • Total Income VVUS $368
  • GLD had 200 shares in LT Portfolio
    • Sold 1 18May12 170.0 Call ($414)
      • BTC 18May12 170.0 Call (-$485) 
          • Net loss $71  Decided it would be more profitable to trade weeklys, Bad plan management.
    • Sold 1 10Feb12 170.0 Call ($52)
      • Expired OTM 10Feb12 170.0 Call
    • Sold 1 17 Feb12 171.0 Call ($128)
    • Sold 1 17Feb12 169.0 Call ($81)
      • Total Income GLD $209 w/ $52 Fully realized
  • Total Income including other LT holding with some C2 not mentioned and dont really need to be, but can be viewed in my portfolio in the following link.    C2 Portfolio

This site is a work in progress and will most likely be updated on the weekends only and I am a working and family man. Good Luck and remember I have researched these stocks and option and these are not recomendations to buy and they carry risk.  Invest at your own risk. and Good luck