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Strategies & Market Trends : Calls and Puts for Income

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To: Keith J who wrote (5619)12/20/2012 11:47:17 AM
From: dealmakr    of 5891
 
Hi Keith,

MLNX one that I haven't dabbled in for a while was short calls when it was over 100 before the collapse.

Sold 5 Jan 35 Puts .50 250 received

Margin required about 1900 for the trade

If exercised would need another 17250

Return if not exercised about 13% on margin used and or about 1.45% against cash for the month if exercised.

Wanted to take a small position just to have it on the watchlist and not looking to go too heavy into too much positioning before the new year, but by having a few small positions open on higher beta names, a few quid can be hopefully gleaned on margin that isn't being used. Thanks for bringing it up.

Good Trading

dealmakr
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