I had the following options expire in January. January was a good month. I don’t think I will be nearly as prosperous in February.
American Eagle Outfitters, Inc. (AEO) The Jan 15 puts expired OTM. I wrote these back on 11/25/09 for a 7 week return of 5.28% *. AEO is back below the 100 day SMA. I might consider selling some more 15 strike puts if support holds. This will come off my watch list for now.
AEO Daily
Century Aluminum Co. (CENX) I wrote these puts in my IRA back on 11/18. They expired OTM for a 8 week return of 3.23% *. There is support at 12 and I might look to reenter this by selling March 10 or 12.50 puts.
CENX Daily
DryShips, Inc. (DRYS) The Jan 7.50 calls I wrote back on 12/02/09 expired OTM for a 6 week return of 2.16%. I had also sold some 6 strike puts as part of this trade but I closed them out at break even. DRYS is breaking down and I won’t sell any more puts at this point.
DRYS Daily
Diana Shipping Inc. (DSX) I wrote Jan 15 puts in my IRA back on 12/1. This is a 6 week return of 5.61% *. I still hold some DSX in my Roth. My cost-basis is $11.09.
DSX Daily
Energy Conversion Devices (ENER) The Jan 11 puts I wrote on 11/27/09 expired OTM. This was part of a trade adjustment I made to roll the Dec 12 puts to Jan 11. I also wrote Jan 11 puts in my IRA.
ENER Daily
Hanesbrands Inc. (HBI) The Jan 22.50 puts I wrote on 12/08/09 expired OTM for a 5 week return of 2.63% *.
HBI Daily
RTI International Metals, Inc. (RTI) The Jan 17.50 puts I wrote back on 11/24/09 expired OTM. This is a 7 week return of 4.24% *.
RTI Daily
UAL Corporation (UAUA) The Jan 7.50 puts I wrote back on 12/01/09 expired OTM. This is a 6 week return of 6.56% *.
UAUA Daily
* The return is calculated using the premium I received from the sale of the options (less commissions) and the capital required to pay for their possible assignment.
ENER once again. Sell to open ENER Feb 14 calls in my taxable account. This will bring my cost basis down to $10.60. I closed the Feb 12 covered calls in my IRA a few days ago – just to clarify things. This trade is for a different account where my cost basis is much better.
I added a 1 year chart with daily bars to put this recent run-up into perspective. There is a lot of supply in that 13.50 area so I think there may be some consolidation. I am getting more bullish on ENER though. A pullback to that 50 or 100 day SMA and I will write some more puts.
ENER Daily 1 Year
I closed the Feb 12 strike covered calls on my ENER position I wrote back on December 23rd in my IRA. I decided to take the loss for now and not roll these calls up or forward. I will wait to see if ENER can keep the momentum going on this recent rally. I’m short the ENER Jan 11 puts in my taxable account.
It appears that ENER is in the process of making a bottom at or near the $10.50 area. It even looks like a mini reverse H&S pattern on the hourly chart. ENER closed near the highs and made a little flag at the end of the day unlike the previous rallies of the last few months where it sold off right away. However, ENER needs to get above 12 and make a new high on the daily chart before I get too bullish. A falling 50 and 100 day SMA makes this one guilty until proven innocent.
Many of the solar stocks are improving of late. I follow JASO and SOLR and they are on my “B” list right now.
ENER Hourly
Sell to open Energy Conversion Devices, Inc. (ENER) February 12 calls. The December calls I wrote expired OTM and I decided to turn around and sell February calls right away. I’ve been successful selling calls on ENER in Sep, Oct, and Nov and managed to get my cost basis down to $11.74. I’m short the Jan 11 puts as well.
ENER is stuck in an ugly wedge and I normally wouldn’t be wasting my time with this stock – as a new trade that is. However, I got myself into it months ago and I’ve been able to repair it quite well. No reason to be long a stock with a declining 50 and 100 day MA.
ENER Hourly
I had the following options expire in December.
Century Aluminum Co. (CENX). The December 7.5 puts I wrote back on November 12th expired OTM for a 5 week return of 2.67%. * I’m also short the Jan 7.50 puts. CENX exploded back on December 10th and I’m glad I could participate in part of that move. If we get some consolidation or a pullback in the next couple weeks I may look to sell the Feb 12.50 or 10 puts.
CENX Hourly
Diana Shipping Inc. (DSX) – I had both the December 12.50 puts and December 17.50 calls expiring OTM. I wrote the puts back on October 29th for a 7 week return of 4.74%. * I wrote the calls on November 19th for a 4 week return of 3.10%. * This knocks my cost-basis down to $11.09. I’m currently short the January 15 puts.
DSX Hourly
Energy Conversion Devices, Inc. (ENER) – I wrote December 14 calls back on November 6th. This is a 6 week return of 2.45%. * ENER is showing some signs of improvement. I’m short the January 11 puts.
ENER Hourly
Ultra Financials ProShares (UYG) - The December 6 calls I wrote back on November 13th expired OTM for a 6 week return of 3.49%. *
UYG Hourly
* The return is calculated using the premium I received from the sale of the options (less commissions) and the capital required to pay for their possible assignment.
I sold to open some December 14 calls on my ENER position. ENER is stuck in a wedge between $10 and $14 and all the moving averages have pretty much flattened out. I’m still short the December 12 puts I sold a few weeks ago. There is a lot of supply in the $12 and $13.50 areas that it will need to overcome first. This trade converts it to a short strangle (covered).
ENER Hourly
I sold to open some ENER (Energy Conversion Devices, Inc.) December 12.00 puts right before close. ENER is back above the 50 day SMA on higher volume. There is a lot of supply above $13 but seeing the higher volume does help confirm this recent move higher. I didn’t notice any fundamental news that caused the rally today and I don’t really care because price is the only thing that pays. I’m also long ENER in my taxable and IRA accounts.
ENER Hourly
I had the following options expire in October 2009.
AMB Property Corp. (AMB) – I sold to open AMB October 20.00 puts back on September 8th that expired OTM. This is a five week return of 4.21%.*
AMB Hourly
CardioNet, Inc. (BEAT) – I sold to open BEAT Oct 7.50 calls on September 21st. This is a 4 week return of 5.23%.* I also bought some BEAT 7.50 calls on October 6th. BEAT is still range-bound between $6 and $8.
BEAT Hourly
Diana Shipping Inc. (DSX) – I sold to open DSX October 15.00 calls back on September 16th that expired OTM. This is a 5 week return of 3.28%.* I might turn around and sell some November 15 calls right away.
DSX Hourly
Energy Conversion Devices, Inc. (ENER) I sold to open ENER October 13 puts in my taxable account on September 17th. I was put these shares at $13. When I opened this trade ENER had a flat 50 day SMA but it has since started declining. I’m leaning towards selling some November 13 calls on any further signs of weakness. ENER does have some nice volume on these recent rallies as seen on the hourly chart.
I also had some ENER October 14.00 calls expiring OTM in my IRA. I sold these back on September 21st and they expired OTM for a 4 week return of 3.90%.* This brings my cost basis down to $12.48.
ENER Hourly
United States Natural Gas (UNG) – I sold to open UNG October 12.00 calls back on September 18th and again on the 24th. These calls expired OTM for a 4 week net return of 4.12%.*
UNG Hourly
* The return is calculated using the premium I received from the sale of the options (less commissions) and the capital required to pay for their possible assignment.
I sold to open ENER Oct 14 covered calls in my IRA. ENER has a flat 50 day SMA. I decided to sell calls and collect some premium anticipating some short-term weakness.
ENER Hourly
I had the following options expiring in September.
Energy Conversion Devices, Inc. (ENER) – I sold ENER September puts back on July 23rd in my taxable account. This is a 2 month net return of 7.54%.* I sold ENER October 13 puts on September 17th once I was confident the September puts would expire OTM.
I also hold ENER in my IRA and had some September 16 calls expiring which I sold on August 10th. This is a 6 week net return of 4.64%* and lowers my cost basis to $13.01.
ENER Hourly
United States Natural Gas (UNG) – I had September 14 calls expiring that I sold back on August 10th in my taxable account. This is a 6 week net return of 4.95%.* and brings my cost basis down to $11.52. I sold some UNG Oct 12 Calls in my IRA on Friday, September 17th before close.
UNG Hourly
RTI International Metals, Inc. (RTI) – I sold to open RTI Sep 17.50 puts back on August 4th. This is a 6 week net return of 6.24%.*
RTI Hourly
Smith International Inc. (SII) I sold SII September 25.00 puts back on August 13th. This is a 5 week return of 2.77%.*
SII Hourly
Basic Energy Services, Inc. (BAS) – I sold BAS Sep 7.50 puts on July 24th. This is a 6 week net return of 15.23%*.
BAS Hourly
I closed out these September options prior to expiration:
* The return is calculated using the premium I received from the sale of the options (less commissions) and the capital required to pay for their possible assignment.
