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10/23/2009 - ThetaOptions Margin Portfolio –  AMZN Bear Call Spread

AMZN posted some nice numbers today, but does that justify a 25% increase in the stock with an existing P/E of 78.  We surely don’t think so, so we’re entering a nice little “Bear Call Spread” position.

Nov 09:
Sell to Open: (1)  115/120 NOV Vertical Call – $2.40 credit

Risk:  $2.60

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10/23/2009 – ThetaOptions Margin Portfolio –  MSFT Covered Short Position Opened

MSFT beats the street & the stock rally’s 10%.  Just like our the INTC play made, we’re ready to run another covered short position.

Stock:  Short 100 shares of MSFT @ 29.10

Sell to Open: (1) NOV 29 Put – $0.75 credit

Note: The shorted shares & PUT position were executed within seconds of each other!

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10/21/2009 – ThetaOptions Margin Portfolio –  UAUA Short Trade Closed

Wow, what a nice pullback this afternoon on the stock.  Mission accomplished!  There is no sense waiting until opEx day to collect the last $100; not with 1000 shares shorted!

Stock:  Cover 1000 shares of UAUA @ 6.82

Buy to Close: (10) 9 NOV Puts – $2.30 credit

One Day Profit: $200

Note: The covered shares & PUT buyback were executed within seconds of each other!

10/20/2009 – ThetaOptions Margin Portfolio –  United Airlines Short Position Initialized

United Airlines is up 10% this morning on a mediocre earnings report.  The Margin Portfolio will engage in a classic ‘Covered Put’ with 15% upside protection. The stock will need to finish higher than $9.30 on OpEx day before this trade begins to accumulate a loss.

Stock:  Short 1000 shares of UAUA @ 8.02

Sell to Open: (10) 9 NOV Puts – $1.30 credit

Note: The shares MUST be sold short before the PUT order is entered. A combo order may be used!