Well Puts

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.

STO UAUA (UAL Corporation) January $7.50 puts. UAUA jumped back above the 50 day SMA on trendline support. I had an order in this morning at the 6 strike but it didn’t get filled. I sold the 7.50 strike which leaves me the 6 strike in case I need to make any trade adjustments.

All the major airlines are up today. I’ve had several of the airlines in my watchlist and finally went with UAL. I may add some DAL or CAL on a pullback.

UAUA Daily

UAUA Weekly