Hello Pezz, Today’s Report:
I received confirmation that the following expired worthless on whomever bought the options from me back in January Message 19734439 <<January 26th, 2004>> :
I shorted AEM August Put strike 12.5 at USD 1.40/contract, and just as a puzzle for my opposite,
I shorted AEM August covered Call strike 15 at USD 0.70/contract :0)
… thus claiming USD 2.10/shr off a stock that is only selling for USD 13.81/shr. I hope I have cleared up the puzzle for my opposite, and it sure beats waiting for a dividend on QCOM, and a lot more fun ;0)
Here is the overall sequence of play for the AEM game:
http://www.siliconinvestor.com/readmsg.aspx?msgid=18253310
November 19th, 2002
(c) few dollops of Agnico Eagle Mines (AEM) at 11.93, and
Shorted
(d) load of AEM May Put 12.5 and
(e) bunch of AEM May Call 12.5.
Message 18732391
March 21st, 2003
(a) Bought a dollop of Agnico Eagle Mine (AEM) @ 11.70/shr
(b) Short AEM Aug Call 12.5 @1.20 covered
(c) Short AEM Aug Put 12.5 @ 1.95
Message 18949830
May 15thy, 2003
Hello Pezz, Today’s Report:
Besides this overview description of expectation Message 18949706 I am anticipating the following:
(A) Expiration of this trade Message 18253310
November 19th, 2002
(c) few dollops of Agnico Eagle Mines (AEM) at 11.93, and
(d) load of AEM May Put 12.5 and
(e) bunch of AEM May Call 12.5,
thus pocketing the USD 2.91/shr combined premium, USD 0.02 dividend, and be putted a load of AEM at 12.5, now priced by market at USD 10.65.
Message 19221008
August 18th, 2003
1/3rd of my US-traded Agnico Eagle Mines got called away at USD 12.5/shr while the current market price is USD 13.34. The Agnicos were purchased ( Message 18732391 March 21st, 2003) at USD 11.70, the 12.5 calls were shorted at USD 1.2/shr … and, oh, BTW, I had also shorted 12.5 puts at USD 2.25. Since the 12.5 calls were used against me, the 12.5 puts expired worthless :0)
Needless to say, but I will say anyway, I view the above trade as a classically good trade that is simple, elegant, profitable, and fun.
Message 19734439
January 26th, 2004
Hello Pezz, Report – Canadian Front:
I bought back my shorted AEM February Put strike 12.5 at USD 0.55/contract, realizing a negligible profit of USD 0.25/shr Message 19228192 <<August 21st, 2003>>;
I decided to leave the other part of the Siamese twins trade Message 19228192 <<August 21st, 2003>> alone, allowing the AEM February Call strike 15 to expire worthless on my opposite speculator, claiming his USD 1.3/contract premium as my prize.
After I got done with my opposite speculator in the above described game, I tempted the person with a brand new exchange that he is not so familiar with :0)
I shorted AEM August Put strike 12.5 at USD 1.40/contract, and just as a puzzle for my opposite,
I shorted AEM August covered Call strike 15 at USD 0.70/contract :0)
… the opposite speculator agreed!
To remind you, my underlying AEM positions were accumulated so, some by pillaging and others by foraging:
Message 18253310 <<November 19th, 2002>>
Message 18732391 <<March 21st, 2003>>
Message 18949830 <<May 15th, 2003>>
Message 19221008 <<August 18th, 2003>>
… I will skip the tallying, because I know, ultimately I will have a bunch of AEMs with effectively zero cost basis [EDIT: getting closer];0)
As I mentioned many times, I think option premium is like rent, and one should never be completely without it, as if it is air.
<<Unloaded some deadwood that if I had the slightest clue as to what the hell I wuz doin I would've done last week! ... got outa the NEM biz @ 6.90 paid 10.70 ... bullish for you ...and others.... who know who they are. Nonetheless hada stop the pain.Hope gold goes to ZERO! %^)>>
Yes, you did not go with the Force ;0)
As the Albino priest in "The Da Vinci Code" would say, '<<pain>> is good', for that is how we get to reflect and learn, even if only for a nano-second before we are finally, as in really, done ;0)
There is much to learn about gold, and the first lesson is, 'it has no correct price', and so zero is as good a guess as a million, in any currency unit :0)
Chugs, Jay |
