10/20/2009 – ThetaOptions Margin Portfolio –  United Airlines Short Position Initialized

United Airlines is up 10% this morning on a mediocre earnings report.  The Margin Portfolio will engage in a classic ‘Covered Put’ with 15% upside protection. The stock will need to finish higher than $9.30 on OpEx day before this trade begins to accumulate a loss.

Stock:  Short 1000 shares of UAUA @ 8.02

Sell to Open: (10) 9 NOV Puts – $1.30 credit

Note: The shares MUST be sold short before the PUT order is entered. A combo order may be used!