Published: 2011-02-22 17:53:00 EST by
I STO the $10 Call option against my shares of CPLP because I did not believe it would stay above the $10 strike price through option expiration. This was a successful analysis as it expired worthless, leaving me with the premium in my account. My opinion of this stock has not changed, so I have STO another $10 Call option against my CPLP shares with the expiration date of March 19, 2011.
The $30 Put option I STO was executed against my cash, so I am currently the owner of 100 shares of DWA. For this reason I set an order to STO a $30 Call option against these shares, unfortunately the stock value has decreased as well as the limit I set to STO the order. Currently the order remains open in wait for the stock price, and option price, to recover. I believe this should occur within the next two weeks. If not, I will STO the next available $30 Call option, for April 2011. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG, Inc.
STO - sold-to-open / sell-to-open
Labels: call options, cash-secured puts, put options, trade terminology in use, trading strategy
Updated: 2011-02-22 17:53:12 EST
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