Investor's Opinion

Portfolio Update

Published: 2011-02-22 17:53:00 EST by Unknown

With option expiration occurring last Saturday, February 19, 2011, I have a few things to report in relation to my last post. In my last post I reported that I STO a $10 Call option against my shares of CPLP. In the post prior to that I reported, in addition to my new plan for this year, my STO a $30 Put option for DWA, secured by my own cash.

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.

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