Any information shared on the Option Portfolio Blog does not constitute financial advice in any way. The site is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. Options have specific risks. You are advised to discuss your specific requirements with an independent financial adviser. We can not be held responsable for any incomplete or inaccurate information found in the blog, nor for any harm that it may cause.
We sold 10 puts PANACOS PHARMA (PANC – USD 2.81) January 2008 with strike USD 2.50 at a price of USD 0.35.For the obligation to buy PANC at USD 2.50 if the stock would trade below 2.50 towards the maturity of the option in January, we receive an upfront payment of USD 350 (10*100*0.35). As a 100% margin (fully cask covered puts), our bank will block our savings account by USD 2.500.PANC can fall USD 0.66 or 23% before the trade will produce a loss.
We paid USD 0.75 to buy back (close buy) our short September puts on EVERGREEN SOLAR (ESLR – USD 8.95).We had sold these puts at USD 1.15, so we make a gain of USD 400.
Our blog is now 1 month old.With over 3.500 visitors we can be more than satisfied.Thanks for stopping by.In the coming months we will try to improve the quality.Feedback welcome!
