Bidu Feb10 Short Play – Profit $465
January 13th, 2010, 10:16 am EST. Posted under Margin Portfolio (MP) by ThetaTrader.
Post Tags: , BIDU, CLOSED
438.48 (-4.75)
02/09/2010 – ThetaOptions Margin Portfolio – BIDU CLOSED – Profit $465
We finally were able to buy back the FEB short caller. And just in a nick of time before earnings tonight. There’s really no sense chances $35 on $4000 in margin.
Filled Order:
BOT +1 BIDU 100 FEB 10 550 CALL @.35 debit
Position: None
Profit Calc:
Sold 500 Call= $5 Credit
Sold 550 Call = $4 credit
Bought 500 Call = $4 debit
Bought 550 Call = 0.35 debit
Profit = 5+4-4-0.35 = $4.65 Profit
Risk/Reward:
Max margin $12,750/$465 = 3.6% return in (4) weeks, that’s pretty bad; but our original margin was $4300.
January 15th, 2010 at 11:43 am
01/15/2010 – Trade Adjustment
The (MP) is selling another Naked Caller in order to reduce our cost basis. The margin has more than doubled since we placed this trade.
Filled Order:
SOLD -1 BIDU 100 FEB 10 550 CALL @4.00 credit
January 19th, 2010 at 12:53 pm
01/19/2010 – Trade Adjustment
The (MP) has bought back the FEB 500 naked caller. As a result, the required margin has gone down $4400.
Filled Order:
BOT +1 BIDU 100 FEB 10 500 CALL @4.00 debit