As I mentioned in my post concerning ANR, it seems that option premiums for July are baking in a very volatility until expiration. For FAS specifically, premiums have been slashed dramatically since I started taking positions in it in March. I decided to establish an August call for one of my FAS positions leaving me with only one which remains uncovered. For that position I hope to see a rise in FAS to around $11 for me to sell another call. The new profit/loss projections are below:
4/14/2009 -- Bought 100 FAS @ 9.245
4/14/2009 -- Sold To Open 1 FAS May $9 Call @ 0.9
4/15/2009 – Bought To Close 1 FAS May $9 Call @ 0.25
4/15/2009 – Sold To Open 1 FAS May $10 Call @ 0.95
5/15/2009 – May $10 Call Expired
5/18/2009 – Sold To Open 1 FAS June $10 Call @ 1.05
6/19/2009 - Covered Call Expired
6/26/2009 - Sold To Open 1 FAS August $10 Call @ 0.85
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $924.50
Current Cost Basis: $5.75
Downside Coverage From Current Price: 41.5%
Possible Max Upside: 50.99%
Annualized Max Upside: 143.16%
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