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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: pezz who wrote (35994)	7/11/2003 5:33:14 AM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

Hello Pezz, Today’s Report: I got notified that someone took away a dollop of my FCX shares at USD 17.5 via covered calls shorted earlier. The current market price is USD 24.9/shr. This trade - Message 18552162 <<February 7th, 2003 (d) Long FCX shares @ 16.99 (e) Short FCX August Call 17.5 covered @ 2.00 (f) Short FCX August Put 15 @ 1.35>> Message 18997777 <<June 3rd, 2003 (a) Closed this FCX August Put 15 Message 18552162 at USD 0.15/option, earning USD 1.15/option>> ... is now completely closed, and I earned a USD 3.71/shr return on an investment of USD 13.64 over 5 months, or 27% for no sleepless anxiety or noticeable risk. Yes, I know, I missed out on the 92% return had I simply gone long the shares and dispensed with the option straddle. I still have part of the following trade open: Message 18514660 <<January 30th, 2003 Hello Pezz, Only Another Report: (a) Purchased a dollop of FreeportMcMoran (FCX) shares at 18.94/shr (b) Short sold a dollop of FCX August Put 17.5 at 1.70/shr (c) Short sold dollop of FCX August Call 20 at 2.00/shr>> Message 18997777 <<June 3rd, 2003 (b) Closed this FCX August Put 17.5 Message 18514660 at USD 0.20/option, earning USD 1.50/option>> … the trade is destined to earn USD 4.56/shr on investment of USD 15.24/shr over 7 months, or 30% over same period. Chugs, Jay