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Strategies & Market Trends : Calls and Puts for Income
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To: dealmakr who wrote (4943)9/17/2011 8:24:41 AM
From: dealmakr   Read Replies (1) of 5891
 
Updated position XRX 09/17/11

11/30/10 Sold 50 Dec 11 Put .16*
11/30/10 Sold 30 Dec 11 Put .15*
12/06/10 Bot 3000 XRX 11.74
12/06/10 Sold 30 Apr 12 Call .82*
12/31/10 Sold 25 Jul 9 Put .30*
01/21/11 Sold 30 Feb 12 Call .12*
01/27/11 Sold 30 Feb 11 Call .16*
02/09/11 Sold open 30 Jul 12 Call .32*
02/22/11 Bot 1500 XRX 11
02/22/11 Sold 15 Apr 11 Call .46*
02/23/11 Sold 25 Oct 9 Put .52*
03/14/11 Sold 15 Oct 12 Call .40*
03/16/11 Sold 15 Jul 11 Call .30*
03/16/11 Sold 25 Oct 12 Call .30*
03/22/11 Sold 15 May 11 Call .16*
03/25/11 Bot 1500 XRX 10.68 (16020)
04/11/11 Sold 20 Oct 12 Call .47*
04/12/11 Sold 30 May 10 Put .14*
05/06/11 Bot 1500 XRX 10.35 (15525)
05/06/11 Sold 20 Jun 10 Put .23*
05/23/11 Sold 30 Jul 11 Call .11*
05/25/11 Sold 25 Jul 9 Put .16*
06/08/11 Bot 1500 XRX 9.47 (14205)
06/08/11 Sold 35 Oct 11 Call .17
06/29/11 Sold 25 Aug 9 Put .12*
06/29/11 Sold 25 Jan 9 Put .52
07/22/11 Sold 40 Sep 9 put .11*
07/22/11 Sold 55 Sep 11 call .12*
07/29/11 Sold 25 Oct 9 Put .40*
07/29/11 Sold 25 Oct 10 Call .30
08/01/11 Sold 25 Oct 10 Call .21
08/02/11 Sold 20 Sep 9 put .40*
08/05/11 Sold 25 Aug 8 Put .18*
08/17/11 Sold 25 Sep 8 Put .24*
08/17/11 Sold 25 Oct 8 Put .44
08/19/11 Sold 25 Oct 7 put .43
08/19/11 Bot 1500 XRX 7.51 (11265)

Closed Trades Profit/Loss

12/18/10 Expired 80 Dec 11 Put 1250
12/29/10 Dividend .0425 on 3000 shares 127.5
01/21/11 Bot close 30 Apr 12 Call .28 1620
02/13/11 Bot close 30 Feb 11 Call .13 90
02/19/11 Expired 30 Feb 12 Call 360
03/25/11 Bot close 15 Apr 11 Call .05 615
03/25/11 Bot close 30 Jul 12 Call .14 540
03/29/11 Dividend .0425 on 6000 shares 255
04/11/11 Bot close 25 Jul 9 Put .13 425
05/21/11 Expired 30 May 10 Put 420
05/21/11 Expired 15 May 11 Call 240
06/08/11 Bot close 45 Jul 11 call .03 645
06/08/11 Bot close 20 Jun 10 Put .59 (900)
06/28/11 Dividend .0425 on 9000 shares 382.5
07/01/11 Bot close 25 Oct 9 Put .18 850
07/15/11 Expired 25 Jul 9 Put 400
07/22/11 Bot close 60 Oct 12 Call .07 1870
08/02/11 Bot close 55 Sep 11 call .03 495
08/05/11 Bot close 25 Aug 9 Put .70 (1450)
08/19/11 Bot close 25 Aug 8 Put .53 (875)
09/18/11 Bot close 60 Sep 9 Put 1.18 (5840)
09/12/11 Bot close 25 Sep 8 Put .75 (1275)

Total Return P/L on closed trades 245

Long 10500 XRX avg/share 10.36 (108735)

Stock closed 09/16/11 8.02

Short 25 Oct 7 Put 1075
Short 25 Oct 8 Put 1100
Short 25 Oct 9 Put 1000
Short 50 Oct 10 Call 1275
Short 35 Oct 11 Call 595
Short 25 Jan 9 Put 1300

Net Position Exposure

Covered Calls 8500 shares
Naked Puts 10000 shares

Covered the Sep 8&9 strikes prior to the market staging a rally and would have had the 8 calls for Sep go bingo, but just didn't want the additional stock exposure at this time with XRX filing an 8K on 09/06 issuing another 16.6mm shares to the pension plan which could be sold. Strikes me as a bit underhanded when they have touted a large buyback using their free cash flow for the 2nd half of the year. Why issue stock and not use cash, that to me is a serious question about cashflow issues and decided not to take any more stock in until earnings are over. Another problem that I have had when trying to hedge is bunching up the covered calls and not having any exposure during Aug & Sep to offset the NP's. Will look at opening Nov CC's for additional premium and try and get back to having CC's & NP's offsetting on the same month. If the stock continues to gain will look to close the Oct NP's.

This trade has been a loser and using naked put options has increased the losses when it broke down from 9. Forward PE now down under 6 and will stay around for a while looking to work through it.

Good Trading

dealmakr
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