Wednesday, June 3, 2009

Closing Transaction - Tivo (TIVO)

Sometimes it is smarter to be lucky, than lucky to be smart. This was definitely the case with TIVO. Last night, an appeals court ruled in their favor on a patent infringement case against Echostar, and was awarded over $100 million in damages. This amount comes to about half of annual revenues for Tivo providing a needed boost in times of decreased demand. This however is a short term boost, and has no real impact on the company's future profits. As such, I decided to exit the position and reap over a 300% annualized gain. The purchase info is below:

4/19/2009 -- Bought 100 TIVO @ 7.48
4/19/2009 -- Sold To Open 1 TIVO June $7.50 Call @ .63
5/28/2009 -- Bought To Close 1 TIVO June $7.50 Call @ .25
5/28/2009 -- Sold To Open 1 TIVO Nov $10 Call @ .35
5/28/2009 -- Bought To Open 1 TIVO June $5 Put @ .2
6/3/2009 -- Bought To Close 1 TIVO Nov $10 CAll @ 1.85
6/3/2009 -- Sold 100 TIVO @ 9.70


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $748.00

Realized Upside: 12.95%

Annualized Max Upside: 315.11%

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