Update Transaction - Alpha Natural Resources (ANR)

I successfully executed my strategy with ANR, by buying back the August call, waiting for a rise in the ANR share price, and reselling the call. This has essentially netted me an additional 1% gain if the position is called away at August expiration. Although I dont have high expectations of ANR being called away at expiration, I also do not foresee a share price decrease below $20. 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
7/9/2009 -- Sold To Open 1 ANR $30 August Call @ 0.75



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: $27.01


Maximum Downside Risk (due to Put): 26%
Downside Coverage: None
Possible Max Upside: 10.67%

Annualized Max Upside: 41.44%

Update Transaction - Mack-Cali Realty (CLI)

I decided to sell another covered call on my position in CLI, leaving only 100 shares uncovered. The market is continuing to show signs of deterioration, and I want to give myself some protection. I am choosing to leave my last 100 shares uncovered just in case CLI manages to make it above $23, in which case I will sell a $25 call on the last 100 shares. The profit/loss info is below:


Various -- Bought 100 CLI @ 22.90
2/23/2009 -- Sold To Open 1 CLI July $25 Call @ 0.4592
3/6/2009 -- Bought To Close 1 CLI July $25 Call @ 0.1408
4/1/2009 – CLI Dividend @ .45
4/9/2009 – Sold To Open 1 CLI May $22.5 Call @ 2.8925
5/15/2009 – May $22.5 Call Expired
5/18/2009 – Sold To Open 1 CLI June $22.50 Call @ 1.8925
6/19/2009 - June $22.50 Call Expired
7/1/2009 - Dividend @ .45
7/7/2009 - Sold To Open 1 CLI August $22.50 Call @ 1.1425

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2290.00


Downside Coverage From Current Price: 25.9%
Possible Max Upside: 28.06%

Annualized Max Upside: 56.89%

Update Transaction - Alpha Natural Resources (ANR)

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

Initial Transaction - United States Natural Gas (UNG)

I decided to open another position in UNG, after it has decreased more than 15% from its price on June expiration. I still believe that the price of natural gas is hovering around its bottom, and it is only 3% above its 52-week low, which means there is much more potential upside than downside. It has not participated in the run-up of commodity prices since the beginning of March, and is therefore pretty safe in my opinion. As I had a previous position in UNG which was called away at a loss (for the actual stock, though the CCIP position was not a loss), I did not want to create a wash sale by buying new shares within the 30 day window. As a result I decided to instead sell a cash-secured put for August. This put would make my cost basis 6.6% below the current 52-week low. I think this position will end up doing quite well, and I wouldnt be opposed to selling another cash-secured put if UNG decreases further. Just as a note, I believe for those of you who are not covered call investors, that cash-secured puts offer a very interesting way of starting a position in a stock, but possibly lowering your cost basis at the same time. The performance metrics are below:

7/2/2009 -- Sold To Open 1 UNG August $13 Put @ 1.15


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Put Sale Profit: $115.00


Downward Movement Required (Put Sold When UNG@13.04): 0.3%
Possible Max Upside: 8.85%

Annualized Max Upside: 64.58%

Dividend Payment - Best Buy (BBY)

This is simply an update to the BBY position, showing the passing of an ex-div date. The new profit/loss info is below:

6/12/2009 -- Bought 100 BBY @ 37.54
6/12/2009 -- Sold To Open 1 BBY July $39 Call @ 1.54
6/12/2009 -- Bought To Open 1 BBY June $35 Put @ 0.6
6/18/2009 -- Bought To Close 1 BBY July $39 Call @ 0.50
6/18/2009 -- Sold To Close 1 BBY June $35 Put @ 1.1
6/23/2009 -- Sold To Open 1 BBY July $38 Call @ 0.20
7/2/2009 -- Dividend @ 0.14


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $3660.00


Downside Coverage: None
Possible Max Upside: 6.5%

Annualized Max Upside: 65.9%

Dividend Payment - Mack-Cali Realty (CLI)

This is simply an update to this position showing the passing of an ex-div date. Although the stock ended up being above $22.50 on the day before the ex-div date it was not called away. There are still two other CLI positions which remain uncovered, I will not be writing separate posts for those positions, but they also received the same dividend. The new profit/loss info is below:


Various -- Bought 100 Shares of CLI @ 21.18
3/2/2009 -- Sold To Open 1 July $22.50 Call @ 1.2225
3/10/2009 -- Bought To Close 1 July $22.50 Call @ 1
4/1/2009 -- Dividend @ 0.45
4/3/2009 -- Sold To Open 1 May $22.50 Call @ 2.50
5/15/2009 -- May $22.50 Expired
5/18/2009 -- Sold To Open 1 June $25 Call @ 0.95
6/19/2009 -- June $25 Call Expired
6/22/2009 -- Sold To Open 1 July $22.50 Call @ 0.75
7/1/2009 -- Dividend @ 0.45

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2118.00


Downside Coverage (based on current price, 23): 31.2%
Possible Max Upside: 33.52%

Annualized Max Upside: 88.66%

Dividend Payment - Bristol-Myers Squibb (BMY)

This is simply a post to note the ex-dividend date for BMY. Just as an update, BMY has dropped about 5% since I sold the August call on June 25, I may buy back the call if it gets down to about 5 cents. The new profit/loss info is below:

4/6/2009 -- Bought 100 BMY @ 20.48
4/6/2009 -- Sold To Open 1 BMY April $21 Call @ .34
4/17/2009 -- Covered Call Expired
4/20/2009 -- Sold To Open 1 BMY May $21 Call @ .65
4/29/2009 -- Bought To Close 1 BMY May $21 Call @ .11
5/12/2009 -- Sold To Open 1 BMY June $21 Call @ .55
5/27/2009 -- Bought To Close 1 BMY June $21 Call @ .18
6/25/2009 -- Sold To Open 1 BMY August $22 Call @ .35
7/1/2009 -- Dividend @ 0.31


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2048.00


Downside Coverage (from current price of $20.14): 7.8%
Possible Max Upside: 17.03%

Annualized Max Upside: 45.05%