This week I took a nice 78% profit on Apple Option Calls after Apple declared stellar quarterly earnings.
Listed below is the status of my current options holding for the week ending 10/23/2009:
1. BADXP – December 2009 XDB 165 Put : This one is down around 42% at this time. My purchase price was $717 per contract and it is currently at $410 per contract. Good news is that it was up Friday trading around 36%. The put currently has an intrinsic value of around $200 per contract, so it is an “on the money” option. The XDB (INDEX: XDB) is trading at around $163 right now and my break-even price for XDB is around $158. That is quite possible since we have around 2 months for the option to expire. The XDB fell by $3 on Friday. Another fall of around the same amount will probably make my option premium go black giving me the opportunity to sell the option for a gain.
2. DISAF – January 2010 DIS 30 Call: This one is down around 33% at this time. My purchase price was $150 per contract and currently the option is trading at $100 per contract. The stock price of Disney (NYSE: DIS) is currently at $28.89 and my break-even price is $31.50. With 3 months to go before the option expires, this one should generate gains for me.
3. MHPAF – January 2010 MHP 30 Call: This option has a current gain of around 32%. However, I have already sold half my holdings for a gain of 40%. I am letting the second half of my holdings run a little since I have so much time on the option. The stock price of McGraw Hill (NYSE: MHP) is at $30.49 and I expect it to go higher to give me more gains on my option premium.
4. MOJBP – February 2010 XDM 73 Call: This option is currently at a loss of around 4%. But I have over 4 months to go for option expiration. I would be selling this hopefully at a premium soon though, as I am not sure how long I can count on the Mexican Peso to go up. The good news is I have around $340 per contract of intrinsic value at this time with the XDM trading at $76.40 (INDEX: XDM).
5. MWWKD – November 2009 MWW 20 Call: The option is trading at a loss of around 42% for me at this time. There is not much time on this and I may end up taking a hit on this one. Monster Worldwide (NYSE: MWW) is trading at around $18 now and my break-even point is $20.7 for the stock price.
6. SOJXG – December 2009 SSO 33 Put: This is my latest buy and is up around 8% at this time. This is a play on the stock market correction and time will tell how much correction we see in the market next week. If next week is an up week, I will have to review this position again. The ProShares Ultra S&P500 ETF (NYSE: SSO) is trading at $35.86 and my break-even point is for the SSO to go below $31.80.
7. XJZXO – December 2009 XLF 15 Put: With the expected stock market correction, I am also hoping for the XLF to trade down. This play is down around 30% at this time. I need the Financial Sector ETF (NYSE: XLF) to go down to $13.90 from its current price of $15.10 to break-even on this one.
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