Friday, January 4, 2013

Short NLY Jan 19 '13 $16 Put @ $1.31...


Potential return of +8.1%...

Effective purchase price of $14.69 if assigned...

Dividend yield of 12.26% if assigned...

Hoping it will break above 3 month resistance!



Sold 66% of FOLD @ $3.70...


Loss of -$1.04 per share, or about -23%...

Kept some shares for longer term trading in case of a rebound.

Learned a very valuable lesson: biotech puts could be toxic - especially if you don't read press releases carefully...



Short TGB Jan 19 '13 $4 Put @ $0.86...


Potential 21.5% return on options expiry...

Effective purchase price of $3.14 if assigned...

I noticed a tonne of call open interest and comparatively few puts, so the market may gravitate towards the upside.


P.S. Here's a snapshot of open interest as of now.  Note thousands of contracts on the call side and only hundreds of contracts on the put side.



Sold NMR Jan 19 '13 $5 Call @ $0.95...


For 28% of shares...

Might get called...


Short TC Jan 19 '13 $5 Put @ $0.90...


Potential return of 18% on options expiry...

Effective purchase price of $4.10 if assigned...