Wednesday, March 18, 2009

Initial Transaction - Direxion 3x Financial Bull (FAS)

A position in Direxion Financial Bull 3x Shares was established on March 18, 2009. This covered call purchase was simply to use the current volatility in financial share prices to make a quick profit, and if the etf did not end in the money, then a plan is in place to sell an at-the-money call on monday. This ETF returns 300% of the Russell 1000 Financial services index.

3/18/2009 -- Bought 100 FAS @ 5.58
3/18/2009 -- Sold To Open 1 FAS March $6 Call @ .21


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $553.00


Downside Coverage: 3.8%
Possible Max Upside: 11.7%

Annualized Max Upside: 140.7%

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