01/12/2010 – Margin Portfolio – Alcoa Position CLOSED – Profit $223

Well looks like Alcoa disappointed investors with their earnings report yesterday.  Of course, a 10% decline in the stock price today doesn’t really matter too much after it ran UP 15% before earnings anyhow.   Needless to say, we closed down the entire position this morning after buying back the short calls for 0.02 debit.

Filled Order:

Buy to Close: (8) JAN10 17.50 Call – 0.02 debit

BOT +8 AA 100 JAN 10 17.5 CALL @.02 (our email style order)

Position: None, and our margin is at zero now.

Profit Calc: 2(60) + 4(38) – 1(33) – 8(02) = $223 Profit

Risk/Reward: $3800 (max margin point) / $223 Profit = 5.8%  for (3) weeks; although had Alcoa risen 10% we would have been forced to roll for even money to the FEB $18 callers; something we were glad to avoid!

01/11/2010 – Margin Portfolio – Alcoa Short Position Adjusted

Alcoa earnings is just a 8 hours away & the stock just passed 17.50.  This is painful to watch, especially since we’re short the 17.50′s & 16.0 callers but we believe the stock will finish at or below 17.50 by Friday; therefore we’re going to ride out the earnings play by using a back/ratio to move our JAN16 up to the 17.50′s.  Just remember, Alcoa has already went up a nice 15%  since our original trade on DEC 22nd; so it’s doubtful they will pop more 10% tomorrow morning. However if they do, then we expect to see some profit taking by Friday’s Option Expiration.

Filled Order:

SOLD -2 1/2 BACKRATIO AA 100 JAN 10 16/17.5 CALL @ -.33 (debit)

Position: Our Margin started out at $671, but now we’re at $3300 just to try and save this trade!

01/06/2010 – Margin Portfolio – Alcoa Short Position Adjusted

What a difference ONE day can make; yesterday Alcoa was trading around $16 & today it’s at $17. Obviously this NOT good for our (2) 16 Short CALLers, so we’re going to Double Down (DD) & selling (4) JAN 17.50 Callers naked for 0.38.  Hopefully those clear and we can break even or make a little bit of money on this entire trade.

Filled Order:

Position: Our margin has risen from $670 to $2250. It’s really only up $400 because we’ve just added (4) 17.50 * $300 margin pc. Short callers consume more margin as they become deep-in-money.

12/22/2009 – Margin Portfolio – Alcoa Short Position Initiated

We’ve decided to take a small short position on Alcoa this morning buy selling some naked call options.

Filled Order:

Position: Margin $275 + 60 cash collected (2) = $670

GTC Orders:

Buy To Open: (2) JAN 10 17.50 Calls – 0.05 debit

Buy To Close: (2) JAN 10 16.0 Calls – 0.15 debit

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