Portfolio Update

It has been almost a full month since my last post and option expiration has come and gone. Nothing has changed in my portfolio other than the value of my positions. Currently all but one of my positions is running at a negative capital value. This one exception is a covered call I have on my shares of DWA.

The idea here is to make money off of my losers when I really don't think they should not be losers. For instance, DWA has had a lot of really good movies come out this summer. However, that may have been their down fall as the crowds at the theaters have been really light. Most likely because the economy is still really weak and people are even more scared of spending money than I though they would be during the summer.

My other two positions, CIM and CPLP are also currently running at a negative. CIM has recently put in a new 52-week low of 3.18$, and closed this week at 3.25$. Approximately a 20% decline from the 4$ strike price of two of my previous option plays put me in. My orders to sell calls against my shares has yet to be executed so I currently have no hedge in place at the moment. I am curious to see how low it will go, and out of speculation created a put option at the 2.50$ strike price set to expire December 2011.

The situation with my shares of CPLP is relatively the same. CPLP has hit a new 52-week low of 7.86$, but has recovered some the value back since the beginning of last month. However, it is still far from the 10$ strike price of one of my previous option plays put me in. My order to sell a call against my shares has yet to be executed so I currently have no hedge in place at the moment, either.

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.

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

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