As the stock market has started to turn downward recently, and China announcing its large purchases of commodities, which have been somewhat artificially driving up commodity prices, some of the commodity players have been falling in price. In order to hedge myself somewhat on the downside I decided to buy a $21 put for protection. The performance metrics are below:
7/30/2009 -- Bought 100 IPI @ 26.70
7/30/2009 -- Sold To Open 1 IPI $27 August Call @ 1.54
7/30/2009 -- Bought To Open 1 IPI $22 August Put @ 0.45
8/21/2009 -- Call Expired
8/24/2009 -- Sold To Open 1 IPI $28 September Call @ 0.7
8/26/2009 -- Bought To Open 1 IPI $21 September Put @ 0.25
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2561.00
Current Cost Average: $25.16
Possible Max Upside: 11.29%
Annualized Max Upside: 80.78%
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