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Initial Trade>>

12/14/2009 – ThetaOptions Margin Portfolio – MSFT Position Closed – Even

After TWO long months, we’re finally throwing in the towel on our MSFT covered short play.  It just doesn’t make sense chasing the position in order to turn a small profit, we can certainly find better places to use our cash.

Profit Calculation:

+29.10 [short stock], +0.75 [sold put] = 29.85 credit

-0.05 [bought put], +0.30[sold put] = 30.10 credit

-0.03[rolled to DEC 29 Put] = 30.13 credit

-0.20 [30-31 DEC Call back\ratio] = 29.93 credit

-.05[put], -.03(2)[calls], -30.05 [covered stock], +0.28 (sold call) = 0.05 or $5 Profit

• Ordered List Button…

Filled Order:

Buy to Close: (1) Dec 29 Put – 0.05 debit

Buy to Close: (2) DEC 31 Call – 0.03 debit

Buy To Cover: 100 shares MSFt @ 30.05

Sell to Close: (1) DEC 30 Call – 0.28 credit

Position:

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Closing Trade>>

12/04/2009 – ThetaOptions Margin Portfolio –  MSFT (1/2) DEC Backratio

We’re selling a DEC Backratio in order to protect our MSFT short position.  Hopefully MSFT finishes under 31 by OpEx.

Order:

Sell to Open: (1/2) Dec 30/31 Call Side BackRatio – 0.20 debit

Position:

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11/20/2009 – ThetaOptions Margin Portfolio –  MSFT Short Adjustment

We’re going to roll our Nov 30 Short PUT to Dec 29 for 0.03 credit. Hopefully we capture $1.

Order:

Sell to Open:  (1) NOV/DEC 30/29 Put Side Diagonal – 0.03 credit

Position:

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11/17/2009 – ThetaOptions Margin Portfolio –  MSFT Covered Short Position Adjustment

With only (1) day left before OpEx, we decided to sell ONE last put against our short shares.

Nov09:

Sell to Open: (1) NOV 30 Put Strike – $0.30 credit

Note: Our cost basis is $29.80 after we bought back the $29 short put for 0.05

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10/23/2009 – ThetaOptions Margin Portfolio –  MSFT Covered Short Position Opened

MSFT beats the street & the stock rally’s 10%.  Just like our the INTC play made, we’re ready to run another covered short position.

Stock:  Short 100 shares of MSFT @ 29.10

Sell to Open: (1) NOV 29 Put – $0.75 credit

Note: The shorted shares & PUT position were executed within seconds of each other!