01/05/2009 - ThetaOptions Margin Portfolio – AMZN  Strangle CLOSED – Profit $282

We decided to close the AMZN strangle now and forgo the last $20 of profit. There’s no sense waiting 5 more days to collect $20 when we know we’re going to be assigned the PUT & CALL.

Filled Order:
BOT +1 STRANGLE AMZN 100 JAN 10 110/150 CALL/PUT @40.40 debit

Profit Calc:

• Open Position for $4,400 Credit
• Purchase Vertical PUT & bought back Short PUT – $68 debit
• Closed Trade for $4,050 debit
• 4400-68-4050 = $282 in (4) weeks with $2700 Trade Margin; that’s 10% risk/reward

Position: We’ll let the 110 PUT expire worthless



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