543.36 (+10.03)

03/09/2010 – ThetaOptions Margin Portfolio – BIDU MAR10 Short Closed – $380 Loss

OK, selling naked options becomes way too risky when a stock moves from 380 to 550 in 8-10 weeks.  It’s better to take our loss now, rather than adjust this and risk a huge loss.  Our mental stop loss on this option was $8; we didn’t want to lose more than $4 and that’s where we’re at this morning.

Filled Order:

BOT +1 BIDU 100 MAR 10 550 CALL @7.90 debit

Position: Closed

Profit/Loss: Sold Call $410 & closed for $790 = $380 loss

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. Read the rest of this entry »