Portfolio Update: Put Exercised

As of this post, the weekend past was option expiration and my CIM put options for the 4$ strike was exercised against my cash. This put's me in at a 55 cent per share loss, less that cost of the premium that I collected for the option. Although this is an initial negative, I am satisfied with the result. The result being that my total position is now 400 shares and I can adjust my option order for the 4.50$ December calls from 1 contract to 4 contracts. I will also be increasing my limit for the STO order to 25 cents per contract share which is a net of about 92$ if it gets purchased. Not to mention I get to hold onto an expected 56$ after the next dividend payout between now and December. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com

CIM - Chimera Investment Corp.
STO - sell-to-open / sold-to-open

Late Portfolio Update

Life sometimes just gets in the way. Sometimes it is welcomed, but still a distraction. Anyway, I am back, and here is my update. My CPLP Call was executed and my shares called away. Also, my CIM Put was executed and 100 shares were put to me.

With the clearing of those transactions I have already STO one Put option against my cash to re-enter a position of CPLP. I am currently waiting to see how my two open orders against my shares of DWA and CIM work out. I hesitate to believe that I will be seeing premium for these two orders this month, but DWA is looking like something is about to happen and CIM is already climbing back up. With 18 days left, time will tell. 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

Portfolio Update and Option Picks

As was expected, I was assigned over the weekend for the September 17, 2010 $18 strike call option I sold against the shares I held in the SLV. As of Monday they have been transferred out of my account and $1800 (less commission) has been transferred into my account. The assignment only gave me a little over 5% profit, but I should also take into account the $70 earned through the collection of premiums over the past six months. So that actually brings me closer to 9%. Can we say, "better than bank interest"?

With the assignment proceeds available in my account, I have the capital to cover the purchase of 200 shares of CPLP at $7.50. So with that said, I set a trade order this morning to STO two of the December 18 2010 put options on CPLP. This order triggered at $0.30 a contract share. After commission, I pocketed $53.74. Now, if my analysis is correct, CPLP should go up towards $9-$10 in the next month or so. At which time I could buy it back for a few dollars. However, if it does go down below the $7.50 strike, I am more than willing to accept the purchase of 200 shares of CPLP. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com

From this point I will define the stock symbols and acronyms I use at the end of my post.
CPLP - Capital Product Partners, LP
SLV - iShares Silver Trust ETF
STO - sell-to-open