VHC - Covered call

12/23/2011 WBT BOT +1 COVERED VHC 100 MAR 12 29 CALL/VHC @21.565 ISE ($5.00)

12/23/2011 COVERED SELL -1 VHC 100 MAR 12 29 CALL $5.08 $21.565
BUY +100 VHC COVERED $26.645

@OptionRadar VirnetX ($VHC) bullish buyers of 1,000 March $30 calls on the offer in the first 90 minutes of trading; stock breaking out

CDE

7/18/2011 8:49:04 AM WBT BOT +1 COVERED CDE 100 AUG 11 29 CALL/CDE @27.285 ISE

Sold another call: Filled Sell to Open 1
CDE SEP 17 2011 29.0 Call  Limit 1.00
   
9/16/2011 1:19:36 PM    WBT SOLD -1 CDE 100 OCT 11 29 CALL @1.15 PHLX    ($1.50)   

11/21/2011 WBT SOLD -1 CDE 100 DEC 11 28 CALL @1.02 NASDAQ    ($1.50)    $102.00

Cost price down to : 24.12

ProShares UltraShort Euro (EUO)

WBT BOT +1 COVERED EUO 100 JAN 12 21 CALL/EUO @16.98 ISE
($5.00) ($1,698.00)

Eventual doom of Euro. Goodbye Euro.

Further evidence,
http://www.moneyandmarkets.com/european-debt-crisis-accelerating-again-44880?FIELD9=2

WNR - covered call

Bought a covered call on WNR. In the morning WNR went down quite a bit(< 17).
The APR18C which will expire in few days went down quite a bit too.
I used this call to buy the covered call. The call portion of it, I got it for $.12. 

It did not reduce my cost much, but immediately and hopefully paid my commisions on this trade.
If this call expires I will sell MAY18C on Monday. I think the APR18C will expire.

If WNR shoots past 18 and I get called I will make $85. Lets see.

WBT BOT +1 COVERED WNR 100 APR 11 18 CALL/WNR @17.14 ISE
Commision: $5.00
Cost: $1,714.00

The whole theory behind this trade is the crack spreads. They are very high right now. This is when refiners make most money. WNR is a very good long trade for the next two months.
http://www.bloomberg.com/apps/quote?ticker=CRK321M1:IND

4/19/11
Unfortunately WNR was getting called away. So closed the position manually. With my broker, if a CC is called, the commision is steep($15).
WBT SOLD -1 COVERED WNR 100 APR 11 18 CALL/WNR @17.98 ISE
After commisions made $74. Not bad for a position held for less than a week.

Opened another CC position on WNR on 4/18/11.
WBT BOT +1 COVERED WNR 100 MAY 11 18 CALL/WNR @16.35 ISE
Cost: $1,635.00
Commision: $5
Should have gone for May19 call. But always looking to reduce my cost basis and do CC with ITM options.
If called, I will make a tidy profit for month hold. If call expires, I make $111.

05/04/11
Bought back the MAY11 18 call for 0.05. Looking for a spike in WNR to sell another 18 call(maybe MAY or JUNE).

05/09/11
5/9/11 WBT SOLD -1 WNR 100 MAY 11 18 CALL @.25 CBOE -1.5 25.00

     Expired.

05/23/11
WBT SELL -1 WNR 100 SEP 11 18 CALL @1.10 LMT GTC CBOE
9/19/2011

WBT SOLD -1 WNR 100 OCT 11 16 CALL @1.40 CBOE ($1.50) $140.00

Sold another call. Effectively long 100 shares of WNR at 13.6. with no upside after 16.
9/19: I think WNR will be in sideways action for sometime to come. This is the reason for selling 16C instead of 18C.

XNPT - CoveredCall position

Now that the drug is approved, there will be more upside. There are sizeable milestone payments due. Based on the reports/messages it is valued somewhere around 23.
But I think it may not see $23 very soon. It may take some time. The approved drug will be sold only from June.
 http://www.beaconequity.com/xnpt-on-fire-xenoport-is-back-on-the-wave-of-horizant-approval-2011-04-07/#ixzz1IqdYdZUb

Initiated a covered call position.
WBT BOT +1 COVERED XNPT 100 MAY 11 11 CALL/XNPT @9.545 ISE
If this is called, will make $140 after commissions(14% profit). If not called, it will be 7% profit and then I proceed to sell another call.

Calls in MDVN also look interesting. Need more capital for MDVN, so I settled for XNPT.

4/19/11
Bought back the May 11 call for 0.05.  and sold another call.
WBT SOLD -1 XNPT 100 JUN 11 10 CALL @.30 PHLX (commision $1.5)
This will further reduce my cost.

Will somebody buy this company? Lot of Biotech mergers and aquicitions going on.

TZA - Covered Call

BOT +1 COVERED TZA 100 MAY 11 34 CALL/TZA @30.60 ISE
Commision:$5.00
Cost : $3,060.00

Covered Call - Updating my approach

I did/doing CoveredCall or CoveredStock using stocks that are below $10. Eventhough I was picking strong stocks and making approximately 10%, the dollar amount was small.
I am not worried about the commisions. TOS commisions are very affordable when compared to other well know brokers.
Now my aim is to get more dollar amount in the option sold (bcos time premium ofcourse). This means I need to look for stocks with higher sticker price. After much thinking and doing a reality check, I came to conclusion that I can afford only stocks < $45.
One stock which I found was TDSC. This is a fundamentally good stock. There is a very good reason it went from 17 to 45. The May 45 options had very good time premium. But by the time I put some time into the DD, it went from 43 to now 55 (in matter of days).
The reason I am looking for stocks between $20 and 45 with above average Imp. Volatality is the Time Premuim portion. example, TDSC ATM strikes has good extrinsic value.
TDSC has now went out of my buy range.
CRR is another one. awesome Extrinsic values for two months ahead options. But well out of my reach.
Looking at MDVN, ASYS. May options and ATM strikes have decent extrinsic value.

Covered Call SVM (Silvercorp Metals Inc )

WBT BOT +1 COVERED SVM 100 MAY 11 15 CALL/SVM @13.48 ISE

Looking to enter a covered call (expiring in Apr11)

Looking to enter a covered call using calls expiring in Apr11.
maybe one this: XNPT, TIVO, PUDA, WNR, NAK, GMXR

Closed GRS cc position

11/22/10 WBT BOT +1 COVERED GRS 100 MAR 11 7.5 CALL/GRS @6.20 ISE -5 -620.00


3/14/11 WBT SOLD -1 COVERED GRS 100 MAR 11 7.5 CALL/GRS @7.47 ISE -5 747.00
 
Profit on invested amount: 117 
%profit: 18.9
months held: 4

MELA covered call position

WBT BOT +1 COVERED MELA 100 APR 11 3 CALL/MELA @2.53 ISE

4/1/11
WBT SOLD -1 COVERED MELA 100 APR 11 3 CALL/MELA @2.93 ISE

Profit: $40.
Profit after commisions: 30
Months held: 1
%profit ~ 10

Covered Calls & Roth IRA

I plan to play with more covered calls using options expiring in two to six months. If executed correctly by picking a safe stock, I should be able to manage to get 4 to 10% on invested money after commissions.

Right now I am doing these covered calls in regular brokerage account. But doing this in regular stock account will make me pay high capital gains(< 1 year holding).
I need to avoid these capital gains. How? Do these covered calls in my regular IRA.
But if I do this in IRA account, I will be paying taxes when its time to withdraw. which is not good too :)
Right now money in this IRA is not much(<12,000). So I made the decision to convert this IRA account to Roth IRA.
I should have done this last year to split taxes into two years but my regular IRA is not much, so nothing is lost I think ;)

****The Roth IRA (Roth Individual Retirement Account) is a powerful, “tax advantaged” investment product. The number one benefit of the Roth IRA is that individuals are able to grow and withdraw their "wealth" tax free. ****

1. If I contribute $5,000 to my Roth IRA this year, am I able to write it off on my income-tax return?
Answer is no.
2. What about commisions I pay to buy/sell stocks in Roth IRA. Can I deduct in taxes.
No. Commissions generated by trades inside a tax-qualified account such as Traditional or Roth IRAs don’t matter. Since you are not tracking capital gains or losses within these accounts there is no deduction for these fees from a tax perspective.
3. Advantages of Roth.

COCO CC

WBT BOT +1 COVERED COCO 100 MAY 11 5 CALL/COCO @4.34 ISE

I will close this before or on the day of expiration if it looks like it will be called.
If it is called TOS charges $15. If I close it manually its only $5 commision.

WBT BOT +1 COVERED AXU 100 OCT 11 10 CALL/AXU @7.20 ISE
WBT BOT +1 COVERED GMXR 100 MAY 11 6 CALL/GMXR @4.78 ISE
WBT BOT +1 COVERED AXAS 100 SEP 11 5 CALL/AXAS @4.25 ISE

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