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11/20/2009 – ThetaOptions IRA Portfolio - POT Diagonal Spread Position Closed : Loss ($250)

What a show Wall Street put on for us today.  Potash started the day around 110.  We had a funny feeling that we should have closed the position during the morning while we were even, but we continued to hold on thinking maybe the MM’s will pin it the stock to 110 at the end of day.  Boy were we wrong, at noon the stock took off again & roared all the way to 115….. We took a chance late in the day and bought (2) 120 PUTs hoping for $1 pullback.  A small pullback happen, but not enough to fill our 120’s for $1 profit. Eventually we throw in the towel & bought back the diagonals for $1.50 debit.  Several minutes later we manage to sell the 120’s for 5.25; a 0.15 profit.  On the brighter side, our Margin Account took advantage of the afternoon spike when we realize the MM’s were going to pin this thing to 115.  We decided to take a chance and sell (4) 115 NOV callers naked.  That trade turn out well. So we actually loss (-$250) IRA + ($200) Margin  = ($50)

Nov/Dec09:

Buy To Open: (2) Nov 120 Puts – 5.10 debit : 2:12 pm

Sell To Close: (2) Nov/Dec 105/110 Call Side Diagonal – 1.50 debit

Sell To Close: (2) Nov 120 Puts – 5.25 credit : 3:44 pm

Current Position: None

Profit Loss Day Chart: $85 for the day….

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