Monday, February 14, 2011

Covered Stock position (SD: Closed for 6% profit in 2 months)

bought a covered call on SD(Sandridge Energy Inc. )

BOT +1 COVERED SD 100 JUN 11 7 CALL/SD @6.40

$640 is my investment.

Hoping to see some upside in Natural gas.

[3/21/11] Saw lot of upside. My thesis was right, but the choice of the strick price of the option was pretty bad. Closed the trade for profit.

2/4/11 WBT BOT +1 COVERED SD 100 JUN 11 7 CALL/SD @6.40 ISE -5 -640
3/21/2011 WBT SOLD -1 COVERED SD 100 JUN 11 7 CALL/SD @6.88 CBOE -5 688

Profit: 38
%profit: 5.9375
months held: 2

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