ANR continues to oscillate in a very large range between $20 and $27. As a result, it provides an interesting opportunity to sell calls near the high part of the range, and buy them back near the bottom. As such, when ANR hit $22.50 early in the day yesterday, I decided to buy back my August call, and wait for a bounce in ANR over the next few weeks. I plan to sell the August $30 call again once it gets around $0.80, which I would expect to see after about a 6-7% rise in the ANR stock price. I also still retain the July $20 put to cover my downside in case the stock continues to fall. The new profit/loss info is 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
7/6/2009 -- Bought To Close 1 ANR $30 August Call @ 0.5
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: $27.76
Maximum Downside Risk (due to Put): 28%
Downside Coverage: None
Possible Max Upside: Unlimited
Annualized Max Upside: Unlimited
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