Well Puts

November 2009 Options Expiration summary.

I made a few trade adjustments earlier this month and rolled CENX and GMXR forward and down:

• Century Aluminum Co. (CENX)
• GMX Resources Inc. (GMXR)

I also closed out of some short options positions early to lock in a profit and eliminate any risk of assignment.

• Ultra Financials (UYG)
• McMoRan Exploration Co. (MMR)

DryShips, Inc. (DRYS) – The DRYS November 6.00 puts I wrote at the end of September expired OTM. This is a 7 week return of 7.38%. *

DRYS is forming a wedge on the hourly chart – like just about every other chart I’m seeing right now. I might take another opportunity to sell more puts this coming week. Probably the January 5 strike. I should probably write some covered calls on the small position I’m holding too. I was hoping for a breakout much like DSX but it hasn’t formulated yet.

DRYS Hourly

My current cash position is at about 60%.

* 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 closed the MMR November puts I wrote back in October. This is a 5 week return of 3.80%. *

MMR 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 MMR (McMoRan Exploration Co) November 7.50 puts. Price moved back above the 50 day SMA yesterday on higher volume. Lots of support in the $7.40 area on the daily chart too.

I actually had an order in yesterday after the breakout but it didn’t get filled. I tried again today on a low-volume pullback and caught a bid.

MMR Hourly