poet......jdsu exit....
barring any company specific or non related negative "event" betwixt now and march 17, they should expire worthless....
i look at capacity and current premium...the 165's i sold are around 1, time to close and release the capacity...200's still should erode over the next week or two...
i tend not to trade out quickly, i set the positions normally after recent expiration....i'm looking at aprils now, and will close march when the april opportunity presents itself....not a random act, very programmed and focus is on two or three stocks at a time....looking next expiration at aol,brcm,glw,intc,msft,cmgi...will narrow down depending on stochastic. also look at expiration week for a "scalp"..as with the jdsu feb for 4(sold 2/11, expired worthless 2/17)
try to discipline yourself....it is less stressful, you can generate cash in a very conservative fashion....
e.g....
10xjdsu mar165=12125
10xjdsu mar165= 6500
20xjdsu mar200=42000
10xcpq mar25= 10000
all strikes at or lower then the share price
70625 prem against an assignable 980k stock....return of 7% against capacity......and in reality an infinite return, as it is not a tangible use of cash!!!! just capacity.....sort of like lending someone your line of credit for a fee, without ever accessing it!!!! |
