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

To: Jim P. who wrote (5585)	3/3/2013 2:14:24 PM
From: Jim P.	3 Recommendations Read Replies (2) \| Respond to of 5891

ATLS very long option trade update: So far this is my top or 2nd best option trade. I closed out some of the options that had the spinoff shares. When the bid ask narrowed I closed as they were so thinly traded it left me too locked into the position for my limited capital. I closed out the short $45 calls on a price decline and added long $40 calls on a price dip. Open positions are net cost of $23977 Closed positions are net profit $20125 Net cash cost of $3852 not taking into account taxes Net margin required on short puts $20,400 Capital required for keeping trade open $24252 At risk capital if stock goes to zero $90,000 plus $3852 or $93,852. I have had an offer to buy to close the short 30 puts at $1 but so far the closest trades have been a little over $2. Current bid prices on long options $18.20 for the 25’s $5.00 for the 45’s and $4.90 for the short 30’s My original profit potential was $195,000 as stated in the original post account the short $45 calls capped the amount of money I could make. If I close out the rest of the positions on the bid net would be close to $147,000 on open positions and another $20,000 on closed or about $167,000. I plan on keeping the positions likely through January of 2014. If the price of the stock gets to $75 I plan on selling the long $45 strike calls and using the money to exercise the long $25 calls. Profit at $75 is closer to $600,000 but goal at this point is to exercise as many of the calls as I can afford within the trade and hold long as long as the company is growing very fast with a target sell in the 2017 or 2018 period. This is account there should be a large shift in the NGL market in 2017 which may increase earnings substantially above trend for this company. I would like to have some exposure at that time. Open positions are: Long 70 2014 ATLS 25 calls with spinoff shares cost $37484 Long 70 2014 ATLS 40 calls cost $16,142 Short 30 2014 30 puts with spinoff shares $29649 Closed: Buy 5 calls 12/12 strike 25 at $4.51 and sold 4/12 for $15.57 net $5078 Short 70 2014 strike 45 calls $2.49 premium $17434 bought to close for 2.00 on 2/13/2013 or $13992 Net $3445. Short 30 2014 Strike 35 calls premium $6.40 for $19,167 bought to close $8.00 on 1/24/2013 for $$23,990 Loss $4822 Long 30 2014 30 calls cost $4.51 for $13531 sold 2/16/2013 $9.99 for $29996 net $16424 Net on closed positions $20125 Trades: 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 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 4/9 30 calls strike 35 $6.39 $19167 closed 11/16 70 calls strike 45 $2.31 $16142 closed