After about a 10% rebound from its recent low, ANR got back up around $26. I noticed an interesting dynamic occurring in the option prices for July and August however. The $30 July call option was hardly moving while the stock price would oscillate about 50 cents. The $30 August call option on the other hand was tracking the stock price movement fairly closely. I checked the annualized gain if I sold a July call vs an August call and found that the August call actually yielded a higher annualized return. As a result, I decided to sell an August call instead. 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 June Call @ 1.09
6/16/2009 -- Bought To Close 1 ANR $30 June Call @ 0.15
6/16/2009 -- Bought To Open 1 ANR $20 June Put @ 0.5
6/25/2009 -- Sold To Open 1 ANR $30 August Call @ 1.90
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2926.00
Current Cost Basis: $27.26
Maximum Downside Risk (due to Put): 26%
Downside Coverage: None
Possible Max Upside: 9.78%
Annualized Max Upside: 37.97%
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