Bought to Close TBSI Oct Puts
I closed out my TBSI puts I sold short back on August 24th. You can see from the chart that TBSI moved back to the 61.8% retracement level from the June 2nd high. I also feel TBSI is pretty overextended on a short-term basis and I want to lock this in while I can. This lowers my cost basis to $8.59 on my original long position I was assigned at 10.
Longer term I feel TBSI still has some room to go. The moving averages are all lined up nicely and there was some insider buying back at the end of August as well. I am still long the stock but I decided to close out my puts because there are several weeks to go before Oct expiration and the bid on them is .05. This frees up some cash I can put to work on something else. The other shippers I am holding are doing very well too (DRYS, DSX).
I sold these at .85 and bought them back at .10. That gives me a net return of 7.13% in just over 2 weeks. *
TBSI Hourly Chart
* This is based on the premium I received from the sale of the options (less commissions) and the unmargined capital set aside to pay for their possible assignment.