Well 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.

I sold some TBSI October 7.50 puts this morning. TBSI got back above the 50 DMA on higher volume, but it is still descending so I’m still cautious. DSX and DHT are also doing well today so far and I might buy back my DSX protective put while I still have a small profit. DRYS is pretty quiet.

TBSI Hourly

TBSI pretty much destroyed the shippers today. Thankfully I bought some puts to protect my DSX longs.

I’m still short the 7.50 TBSI puts and I don’t mind buying it at that price to start my position. If there is more weakness I might roll them to September.

TBSI-Hourly

I bought some 15 strike September puts to protect my DSX position. The puts I sold to enter this position nearly paid for the protective puts. I’m still short some DRYS and TBSI puts which already have a nice profit locked in. I have some orders in to close those out.

Back to DSX. Lot’s of MA crossovers and it is fighting the 50 DMA which is flat to declining. I still like it long-term but you can’t be too careful.

DSX 60 Minute