Monday, July 27, 2009
Taking a play off the table
Hey guys, I'm taking my covered call on F off the table on Tuesday morning. On May 15 I bought 2000 shares for $5.05 and sold the September $5 for $1.15 taking my cost average down to $3.90. I'm going to be leaving about .04 of the $1.10 on the table to close it out two months early. I put this play on the day after they did a secondary offering at $5 that was oversubscribed. My feeling was that if they were the only one of the Detroit 3 left standing on their own they would steal market share while the other 2 were in BK court. I will be down to 4 long-term call spread positions after this. Two of those are the JPM and MET that I talked about last week and am hoping to close out soon. The other two are SLV and XLE Jan 2010 call spreads that I plan to leave on.
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Jason,
ReplyDeleteJust got off the phone with your brother and he was saying that you were thinking about going to Chicago to look into prop shops. Got any names in mind? Thats awesome. When you planning to go. Have identified any potential prop shops you are interested in yet? Are you looking at a purely options prop shop? Or do you care?
I will be there the last week of August. I have a contact at Peak6 but it's just that, a contact. Supposedly he is going to set me up with an informational interview while I'm there. I hadn't mentioned anything yet because it may not happen. I have been thinking about moving to Chicago for a few years, but as graduation gets closer in December it's really starting to become a reality rather than a passing thought.
ReplyDeleteSo I'm spending a week there more to get a feel for the city and see if I think I'll feel comfortable there. I've got a list of option prop shop names from a friend who worked for one in Chicago a few years ago. I'm going to try and set up a meeting with each of them if that's possible. I haven't even made any calls yet though. I'll let you know if or when anything actually happens.
Update: I made a mistake yesterday when I said this would leave me with 4 plays on the board. I've also got those 5 SPY $98 August puts. I had already mentally written them off as they are out of the money. Anything can happen as there is another four weeks until expiration, but I would rather those expire worthless as that would mean we held this level or higher. That would allow me to exit some of these positions at a higher profit so I would be fine with that. But that is a $5,500 loss on those puts as of right now.
ReplyDeleteI wasn't able to get up at the opening, as of right now I would be leaving .09 on the table to close this out, that's too much for me. I'll either wait for another bounce of just continue to ride it out. The stock could move 28% against me and I still cash out at the maximum, so I need to be patient. It's a relatively small play compared to my other positions. I think this was more of me just wanting to lock something up and put it in the win column rather than looking at it objectivly.
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