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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