TIME TO BUY BACK TQNT OPTIONS

I am seeing TQNT hit an area of a potential buy back.  Hence, I am looking at buying back the options that were sold a few weeks ago.  I originally sold the contracts for an April, 2011 expiration at $12.00.  These were for $3.00/share or $300 per contract since an option contract has 100 shares in it.

I have set a limit order to buy back the options at $1.00/share which would be a 66% gain. 

CLOSED OUT A WBD OPTION TODAY

I purchased WBD at @ $24.34 on 11/10/2010 and have watched it rise to $32.65 as of today.  Of course I have sold options across this whole time frame.  As of today, I have gained 33.77% on WBD.  A call option that I sold in early Jan. has now become profitable and my indicator is telling me to buy it back as of Friday.  So here is the transaction:

01/06/2011 Sell to Open 3.0000 WBD 04/16/2011 30.00 CALL WIMM BILL DANN FOOD $30 EXPIRES 04/16/11
Details $4.47 per share (That is $1,338.71 back into my account after commisions)



02/28/2011 Buy to Close 3.0000 WBD 04/16/2011 30.00 CALL WIMM BILL DANN FOOD $30 EXP 04/16/11
Details $2.75 per shares (That is an expense of  -$836.22)

So if I sold a contract for $1,338.71, then bought back the contract for $836.22 giving me a profit of $302.49.  That was for two months of waiting and a percentage return on my option of 38.5%. 

When played right options can be very fruitful in adding more money to a trading account to buy more shares of stock at the right time.