Portfolio Update

About two weeks ago was option expiration weekend. Since then I have made a few orders but only one has been executed. The order that was executed was a call option against my DWA position. This call option doesn't expire until September. I chose to sell this option because this seems to be one of those summers where the expression "sell in May and go away..." seems accurate. I am choosing to hold on to DWA through the summer despite the continued bearish movement. I truly believe it to be extremely oversold for it's actual performance as a company. I believe that after the summer it should prove to have done relatively well business-wise in this economy. If I had more cash in reserve I would sell more cash-secured puts against it with the intention of getting put into it while everyone seems to be fearful of it. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com

DWA - Dreamworks Animation SKG, INC

Portfolio Update

With option expiration passing along with Harold Camping's bogus rapture prediction, this is how my portfolio has changed. The Put option I STO against my cash for CPLP was executed, so I am back into the stock where I was Called out of it a month ago. The benefit of this is that I am not subject to the wash sale rule.

CIM didn't move high enough to trigger the Call option order I STO against the existing shares that I do own. This month, I don't think I will attempt to sell against my current shares. However, with favorable conditions I will still be Put into the 300 shares of CIM by next option expiration just before the stock climbs through the 4$ strike price.

DWA moved down even further decreasing the value of my position in it and negating my order to STO a Call option against my shares from ever being put through. I would really like to see this summer's gas prices keep people going to the theaters for entertainment instead of traveling so that I can at least see a premium for STO a call option against my shares, but that is a bias position considering my stake.

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


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

Putting Myself Into A Position

I am really liking the idea of buying low and selling high. I even like it more with the extra income that comes along with selling options against my cash, which then puts me in or calls me out of a position.

On Thursday I STO three options against my cash for the obligation to buy 300 shares of CIM in the event that it does not break back above 4$ a share before the June expiration date. I think this is a fairly good deal seeing as the company pays out a hefty dividend and shows earnings that can actually support it. As a matter of fact I currently own 100 shares because I did a single order over a month ago.

It is my expectation that I will probably not get put into the 300 share position of CIM since there is so much time between now and the June expiration for those options. But, as always, 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 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 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

Portfolio Update

With option expiration occurring last Saturday, February 19, 2011, I have a few things to report in relation to my last post. In my last post I reported that I STO a $10 Call option against my shares of CPLP. In the post prior to that I reported, in addition to my new plan for this year, my STO a $30 Put option for DWA, secured by my own cash.

I STO the $10 Call option against my shares of CPLP because I did not believe it would stay above the $10 strike price through option expiration. This was a successful analysis as it expired worthless, leaving me with the premium in my account. My opinion of this stock has not changed, so I have STO another $10 Call option against my CPLP shares with the expiration date of March 19, 2011.

The $30 Put option I STO was executed against my cash, so I am currently the owner of 100 shares of DWA. For this reason I set an order to STO a $30 Call option against these shares, unfortunately the stock value has decreased as well as the limit I set to STO the order. Currently the order remains open in wait for the stock price, and option price, to recover. I believe this should occur within the next two weeks. If not, I will STO the next available $30 Call option, for April 2011. 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.
STO - sold-to-open / sell-to-open