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

To: dealmakr who wrote (5621)	1/18/2013 4:47:32 PM
From: dealmakr	Respond to of 5891

Updated position 01/18/13 SOHU 03/23/12 Bot 1000 SOHU 55.2 (55200)* 03/23/12 Sold 10 Apr 57.5 Call 2.00* 03/23/12 Sold 20 Apr 47.5 Put .60* 03/26/12 Sold 10 Sep 47.5 Put 3.90* 03/30/12 Sold 10 May 47.5 Put 1.40* 04/04/12 Sold 10 Apr 47.5 Put .60* 04/04/12 Sold 10 Sep 47.5 Put 5.00* 04/10/12 Sold 5 Apr 47.5 Put .91* 04/10/12 Sold 10 Sep 47.5 Put 6.10* 04/10/12 Sold 10 Apr 55 Call .35* 04/20/12 Sold 10 May 57.5 Call 1.20* 05/17/12 Sold 10 Sep 40 Put 3.90* 05/21/12 Sold 10 Jul 55 Call .60* 05/21/12 Sold 10 Dec 25 Put 1.20* 06/26/12 Sold 10 Aug 52.5 Call .20* 07/18/12 Bot 500 SOHU 35.90 (17950)* 08/06/12 Sold 15 Sep 47.5 Call .40* 08/23/12 Sold 10 Oct 35 Put .75* 08/30/12 Sold 5 Dec 50 Call 1.15* 09/24/12 Sold 10 Nov 47.5 Call 1.10* 11/13/12 Sold 10 Jan 47.5 Call .30* 11/19/12 Sold 5 Dec 32.5 Put .25* 11/19/12 Sold 5 Jan 32.5 Put .70* 11/23/12 Sold 5 Jun 25 Put .80 11/28/12 Sold 5 Mar 32.5 Put 1 12/17/12 Sold 5 Jan 47.5 Call .75* Closed Trades Profit/Loss 04/10/12 Bot close 10 Apr 57.5 Call .20 1800 04/21/12 Expired 35 Apr 47.5 Put 2255 04/21/12 Expired 10 Apr 55 Call 350 05/17/12 Bot close 10 May 47.5 Put 3.2 (1800) 05/19/12 Expired 10 May 57.5 Call 1200 06/18/12 Bot close 10 Jul 55 Call .05 550 06/25/12 Bot close 30 Sep 47.5 Put avg 8.85 (11550) 08/18/12 Expired 10 Aug 52.5 Call 200 08/23/12 Bot close 10 Sep 40 Put 1.19 2710 09/22/12 Expired 15 Sep 47.5 Call 600 10/20/12 Expired 10 Oct 35 Put 750 11/16/12 Bot close 10 Dec 25 put .05 1150 11/17/12 Expired 15 Nov 47.5 Call 1100 12/22/12 Expired 5 Dec 32.5 Put 125 12/22/12 Expired 5 Dec 50 Call 575 12/24/12 Bot close 5 Jan 32.5 Put .05 325 01/19/13 Exercised 15 Jan 47.5 Call 675 01/19/13 Sold 1500 SOHU 47.50 (71250) bot at avg price of 48.77 (73150 loss (1900) Total return P/L on closed trades (885) Stock closed 01/18/13 48.28 Short 5 Mar 32.5 Put 500 Short 5 Jun 25 Put 400 Net position exposure Naked Puts 1000 shares A lot of back and forth thoughts about rolling the position up & out for a credit for another month or 2, but decided to let it go and will take a fresh start on any new play. Both sets of short puts have bids to cover @ .05 so the overall loss on the play will be beer money if bot back in, a big difference from the large losses sustained when the position faltered out of the gate. Will put this one in the Thank You Mr Market column for letting me get back to square one even. Now about 9 months into this trade and it sure fell apart early with the stock dropping from the initial entry by better than 20 points in July and with the additional leverage of the short puts a fairly large loss position had emerged. Even though I like the long term story here, decided to be fairly prudent in accepting additional risk in trying to see if this one can be worked out longer term. Story is that even when you do your homework and think that things look good, sometimes the market can have a different opinion. Thats when a position has to be looked at from different perspectives and timeframes to see if the position can be adjusted and the risk managed better by adding or reducing exposure. Good Trading dealmakr