Portfolio Update and Option Pick

Since my last post, I have STO two new positions. The first is a Call against my CPLP position. The second is a Put against cash for a stock I have been watching for a while, CIM.

When I placed the order to STO a Call option against my shares of CPLP, I was strongly influenced by the direction of the momentum indicators on a weekly interval. It was my belief that investors were taking their profits, and the stock would pull back. Unfortunately the pull-back I was expecting was short lived, and it rocketed up to my strike price and muscled through. Because all stocks go up and down, even more so for dividend stocks, I will allow the Call option to remain open against my shares and STO a put option to get back into the stock at the $10 strike price in the even that I get exercised out of my position.

I had placed the order to get into CIM weeks before last months option expiration with little expectation that it would get executed. I wanted my cash doing something other than just sitting in my trade account. So placing an order to secure an option seemed a responsible action until I found something else better. CIM has a relatively wide range that is swings in for it's cost and the dividend is a nice amount to receive if I get exercised into the stock.

I am still waiting to see what will happen with my open order to STO a Call against my DWA shares. Recently DWA has been making head-way towards the $30 strike price I got exercised into it. If things continue as they are, I should be able to get my desired premium for this option cycle.

That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/

CIM - Chimera Investment Corporation
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG Inc
STO - sold-to-open/sell-to-open

Portfolio Update

Another month has passed and I am still in my current positions. This I find to be a success, with a bit of unexpected annoyance. I truly believed DWA would have gone up in the passed month, resulting in me being called out of my position. However, it has continued to slide lower and brought down the value of my position. The good news is that I am free to sell another option against it. Sadly though, at a lower premium than I would have liked. I still believe it to be a strong company with a lot of upside potential, although it is being depressed by the economic situation hindering the usage of an individuals discretionary funds for recreation purposes.

On the other hand, CPLP has maintained a relatively high evaluation these passed weeks in response to the Egypt and Lybia news. Despite the news causing it to hold this relatively high evaluation, it did not breach and hold above the $10 strike price of the option I sold against my position. As a result, that option expired worthless this weekend, freeing me to sell against my position again.

I'm looking to find another stock I can sell a Put option against my available cash. I want this stock to have a dividend that I can collect in the event that the option gets exercised and I have to purchase it. Currently all that I have on my watchlist have either suspended their dividend or require more cash than I have available. I will update in the event that I find one.

That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/


CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG Inc