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
18.00 (-0.51)
01/12/2010 – ThetaOptions IRA Portfolio - Vlo FEB Position Initiated
We would like to demonstrate the usage of back/ratio order in buying stock. Since we like VLO, we have decided to initiated this position within our IRA Portfolio, rather than our Margin account.
Filled Order:
SOLD -3 1/2 BACKRATIO VLO 100 FEB 10 18/17 PUT @.03 credit (email style order)
Position: This position Requires FULL margin within in IRA account, Theta is positive
Trade Note: Our PUT back/ratio order is merely (1) naked PUT with (1) Bear PUT spread. Therefore, we plan to cash out the $1 bear put spread & take assignment on the stock for cost basis of $16 per share. That’s 11% less than the current stock price. Although we can roll the 17 PUT to the following month for credit if we desire, let’s see what happens!
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