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Strategies & Market Trends : Calls and Puts for Income -- Ignore unavailable to you. Want to Upgrade?

To: dealmakr who wrote (5263)

8/12/2012 6:08:45 AM

From: dealmakr

Read Replies (2) | Respond to of 5891

Updated Position ETFC 08/10/12

06/19/12 Bot 3000 ETFC 7.91 (23730)*
06/19/12 Sold 30 Jul 8 Call .37*
06/19/12 Sold 30 Jul 7 Put .12*
06/21/12 Bot 2000 ETFC 7.83 (15660)*
06/21/12 Sold 20 Jul 8 Call .32*
06/22/12 Bot 2500 ETFC 7.78 (19450)*
06/22/12 Sold 25 Jul 8 Call .30*
06/22/12 Sold 30 Jul 7 Put .12*
06/26/12 Sold 20 Oct 7 Put .56
07/02/12 Sold 10 Oct 8 Call .71
07/06/12 Sold 10 Oct 8 Call .72
07/09/12 Sold 20 Aug 8 call .26*
07/10/12 Bot 2000 ETFC 7.63 (15260)
07/16/12 Bot 2000 ETFC 7.86 (15720)
07/20/12 Sold 50 Aug 8 Call .15*
07/24/12 Sold 20 Sep 8 Call .17
08/03/12 Sold 20 Sep 7 Put .17

Closed trades Profit/Loss

07/20/12 Sold 2500 ETFC 7.50 (700) bot 06/22 @ 7.78
07/21/12 Expired 60 Jul 7 Put 720
07/21/12 Expired 75 Jul 8 Call 2500
08/03/12 Bot close 20 Aug 8 Call .12 280
08/09/12 Bot close 50 Aug 8 Call avg .604 (2270)
08/09/12 Sold 5000 ETFC 8.60 3610 bot 06/19 & 06/21 @ 7.91 (3000) & 7.83 (2000)

Total return P/L on closed trades 4140

Long 4000 ETFC avg/share 7.745 (30980)

Stock closed 08/10/12 8.42

Short 20 Sep 7 Put 340
Short 20 Sep 8 Call 340
Short 20 Oct 7 Put 1120
Short 20 Oct 8 Call 1430

Net Position Exposure

Covered Calls 4000 Shares
Naked Puts 4000 Shares

With the management shakeup Etrade once again was the subject of takeover rumors. When I saw the Aug 8 calls trading at about intrinsic parity with the stock, decided to close out the Aug position, why have an additional week of exposure when the position could be closed out at about max return for the trade.

Still like the stock with a longer term horizon of cleaning things up and maybe getting sold at some point, but rumors have a funny way of unwinding quickly if nothing appears to be happening. Would rather sell more NP's on a pullback and have the capital free than wait for the Aug expiration and see if the position was called away then.

Good trading

dealmakr