Wednesday, April 15, 2009

OPTIONS EXPIRING SOON

I have had to just sit back for the past few weeks and do nothing. My options are expected to expire out of the money soon so this was a profitable month.

Here is another trade that I am in relating to Silver (symbol SLV)

03/04/2009 Bought 2000 SLV @ 12.85 (25,700.00)
Sold 10 SLVCM March $13 call @ $0.50
(This reduced my cost basis by only $0.25 since I had 2000 shares and I sold only 10 contracts)

Cost basis = ($12.60) = ($12.85-$0.25)

Bought to close 10 SLVCM March $13 call @ $0.41
Sold to open 10 SLVDM April $13 call @ $0.91
(This reduced my cost basis another $0.25 since I rolled my 10 contracts and this covers one-half of my total shares)

Cost basis = ($12.35) = ($12.60 - $0.25)


The gold contract will also expire worthless so I keep my cost basis at -$17.10

GLD: Opened 02/26/09
Buy to Open 3
OQAAV Net Debit ($19.62) GLD Jan 100 Call 2011
Sell to Open 3
GLDCV Net Credit $1.02 GLD Mar 100 Call
Cost basis ($18.60)

March contract expired. Selling April call closer to current price of $90 since $100 call is only $0.50
Sell to open 3 contracts April $95 call Net Debit ($1.50) GLD Apr 95 Call
Cost basis ($17.10) = ($18.60)-$1.50


For some reason, I forgot to mention that I opened another long term LEAP by buying it and selling an April call. I opened up on March 20th. I bought a Jan. 2011 $31 LEAP on the symbol USO which is for the United States Oil Fund.
Buy to Open 16 Jan. 2011 $31 call contracts OLLAE at a cost to me of ($8.20)
Then sold an April contract immediately:
Sell to Open 16 April $31 call contracts UBODE at a collection of $1.70
So my cost basis is ($8.20)-$1.70 = ($6.50)

This April $31 call contract will expire worthless so my cost basis is ($6.50) and I will roll another contract out in May.

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