IRA – Valero Energy FEB Back-Ratio – Profit $143
January 12th, 2010, 2:06 pm EST. Posted under Individual Retirement Account (IRA) by ThetaTrader.
Post Tags: , CLOSED, VLO
17.62 (-0.32)
02/11/2010 – ThetaOptions IRA Portfolio - Back-Ratio adjusted
VLO has finally sold off a little bit over the past few days. Therefore, with only ONE week left until FEB OpEx, the IRA is going to close down the profitable portion of our original Back-Ratio trade & give up on purchasing 300 shares for $16.Filled Orders:
SOLD -1 VLO 100 MAR 10 17 PUT @.53 credit
BOT +5 VLO 100 FEB 10 17 PUT @.13 debit
SOLD -3 VLO 100 FEB 10 18 PUT @.55
Position: We now have (2) naked 17 PUTs. Hopefully the FEb comes down for 0.05 cents soon
Trade Note:
We open this position for 0.03 credit & we’ve taken $150 profit so far.
Our Risk/Reward would be (3) * 1700 / $150 = 3% in 4 weeks within an IRA. That’s not too bad.
If we clear FEB & the stock dives in MAR, then our cost basis will be 15.50 on 100 shares of VLO 
February 16th, 2010 at 10:21 am
02/16/10 – Trade Adjustment
We bought back the FEB 17 Short PUT for 0.05 this morning. We now have (1) MAR 17 PUT at cost basis of 15.50. Which we really don’t mind owning VLO at 15.50