ThetaOptions

01/13/2010 – ThetaOptions Margin Portfolio - POTash CLOSED Profit $475

We decided to give up on our day order we placed this morning and close down the (2) diagonals in order to preserve our profits.  This trade had Risk/Reward profit of about 7.5% within (8) days.

Filled Order:

SOLD -2 DIAGONAL POT 100 FEB 10/JAN 10 125/120 CALL @2.50 Credit

Position: None

Profit Calc:

• 1/6/10 – Open Position = 0.30 debit
• 1/7/10 – Adjusted naked 120 call = 0.35 credit
• 1/13/10 – Closed Naked callers (2)0.15 = 0.30 debit
• 1/14/10 – Closed Diagonals (2)2.50 = $5.00 Credit

• Total Profit = $475

Risk/Reward: $6300 max margin/$475 = 7.5%

Not bad, $475 is a heck a lot better than when we were $600 behind   That’s why we stock larges amount of CASH to use as MARGIN!  If we would have only had $5000 starting margin on this trade, then we would have rec’d a margin call & been forced to close down this trade for a loss.

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