17.50 (-0.28)

02/23/2010 – ThetaOptions IRA Portfolio - VLO JAN11 Dividend Position Inititiated

The IRA Portfolio is going to initiate a small dividend play on VLO today buy purchasing the stock @ 17.50 and selling the JAN11 LEAP.  If the stock continues to drop, we will convert this position into a Buy/Write by selling the JAN11 15 PUT for credit.  If VLO finishes the year above 17.50, then the trade will make 15%.  In addition, we have approx 15% downside protection until we began to accumulate a loss.  Once again, this is the power of using options within a portfolio to increase your profit & reduce the risk. Read the rest of this entry »

17.62 (-0.32)

02/11/2010 – ThetaOptions IRA Portfolio - Back-Ratio adjusted

VLO has finally sold off a little bit over the past few days.  Therefore, with only ONE week left until FEB OpEx, the IRA is going to close down the profitable portion of our original Back-Ratio trade & give up on purchasing 300 shares for $16. Read the rest of this entry »

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12/14/2009 – ThetaOptions Margin Portfolio –  VLO DEC Short PUTs closed – Profit $220

This morning we were able to buy back our DEC short puts for 0.05.  We sold those for 55 cents & added the 15 Puts later on for protection at 0.06

Filled Orders:

Buy To Close: (5) DEC 16 PUTs – 0.05 debit

Position: We have the Dec 15 Puts & June spread

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12/08/2009 – ThetaOptions Margin Portfolio –  VLO DEC PUTs Added

In-order to reduce our margin requirement on our VLO Naked PUT sell, we’re going to purchase the PUTs below our original strike for the month of DEC.

Filled Orders:

Buy To Open: (5) DEC 15 PUTs – 0.06 debit

GTC Orders:

Buy to Close: (5) DEC 16 PUTs – 0.05 debit

Position: Margin reduced from $1800 to $500 & we collected $275 credit; so we have (5) DEC Bull PUT spreads for 0.49 cents credit per contract.

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11/24/2009 – ThetaOptions Margin Portfolio –  VLO Position Initiated – DEC & JUNE

We really like Valero Energy Corp down at these levels, so we’re going to sell some DEC09 PUTs naked & setup a JUNE 2010 Bull Call Spread. Hopefully we can clear the the PUT & resell another set of them next month. Read the rest of this entry »