23-10-07

Some bottom fishing...

Last Friday our short October USD 25.00 puts on ENERGY CONVERSION DEVICES (ENER / USD  25.59 / YTD – 8,4 %) expired worthless.  We earned the full premium and made USD 330 on the trade. Calculated on the 100% margin we deposited, we made 6% in 6 weeks time, or almost 50% an annualized terms.  We think ENER can be bought around USD 22.50. So, we like to give an order to sell 5 December 22.50 puts at a limit of USD 1.20. The latest option-price for this series can be found here:  http://finance.yahoo.com/q?s=EQIXX.XDid you see the stock performance of E*TRADE FINANCIAL (ETFC / USD 10.93 / YTD – 11.5 %)?   After reporting an unexpected loss the shares of the online broker fell to their lowest level in almost 3 years.  ETFC reported its first quarterly net loss in 5 years on the back of the bad credit environment.  The firm took a USD 200 million write-down linked to mortgage-related investments.  In contrast to its rivals Ameritrade (AMTD) and Schwab (SCHW), E*Trade is much more involved in the credit market.  The worst may not be over but prices below USD 10 look attractive to us.  We give an order to sell 7 puts January 2008 USD 10.00 at a price of USD 0.80.  The stock is allowed to fall  another 15% before this position starts colouring red. Please click the link for the latest option-price: http://finance.yahoo.com/q?s=EUSMB.X

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03-09-07

ENER order filled.

Our order to sell 2 puts Energy Conversion Devices (ENER - USD 25.95) october 2007 USD 25 at a price of USD 1.65 was filled last week. By selling these puts we are entering the obligation to buy 200 ENER shares at a price of USD 25 if they trade below that level by mid October. Our savings account is credited with the option-premium of USD 330 (2*100*1.65). The 100% margin of the trade amounts to USD 5.000 (2*100*25). These funds are blocked on the account as a guarantee. Click here for the actual option price: http://finance.yahoo.com/q?s=EQIVE.X.

Below, we listed the 3 short put options that are maturing this month. Only Evergreen Solar (ESLR) trades ITM (in-the-money). The position however is still above break-even.

September 2007 maturities

TickerStock priceContractsStrikePrice soldReceived premiumBreak-even
ESLRUSD 8,9710 putsUSD 10USD 1,15USD 1.150USD 8,85
ACADUSD 14,395 putsUSD 12,50USD 1,60USD 800USD 10,90
KRYUSD 2,8520 putsUSD 2,50USD 0,30USD 600USD 2,20

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30-08-07

Lets try ENER again!

Energy Conversion Devices (ENER - USD 26.00) is an alternative energy technology company on our watch list. The company makes solar cells and fuel cell batteries. European readers may remember that we sold some June USD 30 puts at USD 3.60 back in February and closed them at USD 0.35 in April. The company reported on Wednesday its fiscal fourth-quarter loss widened as restructuring and other charges offset revenue growth. It expects to post a fiscal first-quarter 2008 profit of $40 million to $45 million. Figures are disappointing. Shares in ENER have now fallen almost 15 % in 2 days and 25% over the last 3 weeks. We still find ENER an attractive play in alternative energy and would like to take a small position in the stock. We give an order to sell 2 puts October 2007 USD 25.00 at a price of USD 1.65. Our break-even price then is USD 23.35. If filled we receive an upfront premium of USD 330. The actual option price can be seen here: http://finance.yahoo.com/q?s=EQIVE.X. For a chart click here: http://stockcharts.com/charts/gallery.html?ener.

19:37 Gepost door in Orders | Permalink | Commentaren (0) | Tags: ener |  Facebook |