United Airlines MAR10 Short – Closed $410 Profit
February 26th, 2010, 11:39 am EST. Posted under Margin Portfolio (MP) by ThetaTrader.
Post Tags: , CLOSED, UAUA
19.16 (-0.50)
03/19/2010 – ThetaOptions Margin Portfolio - Closing Positions – Profit $410
The (MP) is closing down ALL MAR UAUA short call options during the morning pull back, although we have a funny suspicious that WS (Wall Street or Market Makers) might keep it below or at 19 by the end of today, and we’re not taking any chances with our profits at this point in the game.
Filled Orders: (different times)
BOT +10 UAUA 100 MAR 10 19 CALL @.04 debit (GTC order)
BOT +10 UAUA 100 MAR 10 19 CALL @.49 debit (first group)
BOT +10 UAUA 100 MAR 10 19 CALL @.24 debit (last group)
Positions: June Spread Open
Profit Calc:
2/26 – Sold (5) 17.50 Calls @ 0.51 each
2/26 – Shorted (500) Shares @ 17.07
2/26 – Sold (10) 19.0 Calls @ 0.34 each
3/01 – Sold (10) 19.0 Calls @ 0.60 each
3/02 – Opened (5) 19/17.5 Put Back/Ratio – No Cost
3/08 – Closed (5) 17.5 Short Calls @ 1.01 each (0.50 loss)
3/09 – Sold (5) 19 Puts @ 1.28 each (1.28 Gain) – PUT Back/Ratio
3/09 – Covered (500) Shares @ 18.25 (1.18 loss)
3/16 – Closed (10) 17.5 Puts @ 0.05 each (0.05 loss) – PUT Back/Ratio
3/19 – Closed (10) 20.0 Calls @0.05 each (0.45 gain)
3/19 – Closed (10) 19.0 Calls @ 0.49 each (0.15 loss)
3/19 – Closed (10) 19.0 Calls @ 0.24 each (0.36 gain)
Call Side Credit/Debit: $1695/$1285 ==> Profit $410
PUT Side Credit/Debit: $640/$50 ==> Profit $590
Shares Bought/sold short: $9125/$8535 ==> Loss $590
Total Profit: $410, and that’s amazing we made any profit considering the stock rose 20% since our first short play. This is a great example of how we continued to leverage our margin as the stock ran up. Many traders would have taken the loss or margin call around $18.50-$20.00 share. And this is how Wall Street plays their game! They wipe out the naked short PUT sellers, along with the naked Callers as well……they even pound the stock down enough to shake out the long term holders. It’s very hard to win at this casino 
Risk Reward: $17,500 margin\$410 profit or 2.5% Risk/Reward….That’s horrible, but the stock rose 20% after our first short play! So we’re very happy with those results!