Unfortunately, ANR is continuing to be a pain in my side. This may mostly be due to the fact that the market is making me ever more hesitant to create new positions, because I am not yet ready to believe we are completely out of the water when it comes to market drops. I am going to start slowly transitioning my covered call strategy to more conservative stocks which still have quality option premiums in order to keep my sanity. Today I sold a June $27.50 call which would leave me with essentially no gain if in the money at expiration. This decision was mostly made to lower my cost basis, while also making it more likely that the position would be called away. Unfortunately, my old nervous trading ways got a hold of me again, and so I bought back the call when the stock started to rise again, and sold the June $30 call which would leave me with more downside risk but also the possibility of making some money. After all of this trading, I plan to keep the position the way it is. The new purchase metrics are below:
5/20/2009 -- Bought 100 ANR @ 29.26
5/20/2009 -- Sold To Open 1 ANR June $32.50 Call @ 1.24
5/20/2009 -- Bought To Open 1 ANR June $20 Put @ .3
5/21/2009 -- Bought To Close 1 ANR June $32.50 Call @ .55
5/22/2009 -- Sold To Open 1 ANR June $27.50 Call @ 1.45
5/27/2009 -- Bought To Close 1 ANR $27.50 Call @ 2.18
5/27/2009 -- Sold To Open 1 ANR $30 Call @ 1.09
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2926.00
Maximum Downside Risk (due to Put): 29.8%
Downside Coverage: 2.6%
Possible Max Upside: 5.23%
Annualized Max Upside: 61.53%
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