Calls and Puts for Income Message Board

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Strategies & Market Trends : Calls and Puts for Income

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To: dealmakr who wrote (5156)	6/18/2012 1:30:04 PM
From: Jim P.	Read Replies (2) of 5891

I have learned the hard way about trying to mix taxes and trading. I have went through my actual trades on ATLS. Buy 5 calls 12/12 strike 25 at $4.51 and sold 4/12 for $15.57 net $5078 Open ATLS long 70 2014 25 calls cost $37484 short 70 2014 45 calls premium $17434 without spinoff shares. short 30 2014 30 puts premium $ 29649 profit from closed position and net credit $14677 on positions. Open ATLS long 30 2014 30 calls cost $13531 short 30 2014 35 calls premium $19,167 net credit $5636 net credit on all positions plus small profit take $20313 Potential loss if ATLS and ARP go to zero $90,000 less $20313 in credit and profit or about $70,000 Potential profit ATLS over $45 and ARP at $25 30 puts net $29,649 70 calls net $140,000 Cost basis will be close to zero on these as the shares of ARP and the option premium on the 45 strike calls short should exceed basis if the stock is actually over $45 30 calls at strike 30 max profit is $6.88 without trading cost and bid ask spread on the short strike 35 calls net $20,000 + or - potential profit $190,000 + $5000 taken or around $195,000 and upside here limited to ARP price rise. Exposure is only to 700 shares net on the calls. actual trades all 2014 January options buy 12/12 5 calls strike 25 $5.42 closed 12/12 20 calls strike 25 $5.41 $13527 12/12 5 calls strike 25 $5.42 $2708 12/30 20 calls strike 25 $4.81 $9624 1/3 20 calls strike 25 $5.81 $11621 $37484 sold short 12/12 10 puts strike 30 $8.98 $8993 12/13 10 puts strike 30 $10.28 $10283 12/30 10 puts strike 30 $10.38 $10383 buy 1/19 30 strike 30 calls $4.51 $13531 sold short 4/9 30 strike 35 calls $6.39 $19167 Any thoughts?

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