Friday, November 28, 2014

Trade summary: chips chips chips, and bailing out.

Today's trades:  Closing a winner & exiting a position as I had grown bored of waiting for.

Here's the brick:


This morning I decided to exit my position of GM - General Motors.  It had bobbled up and down since I had opened the position.  The market crash (and recovery) made both strikes go completely in-the-money and then back out again.  I've lost interest waiting for it, as typically my moves come to fruition in a little less than 1/2 of the time from open to expiry.

CLOSED: GM - General Motors
5 contracts DEC $32/30 bull put spread 
Position open: 18-aug
Position closed: 28-nov
Position open: 102 days
Maximum Premium : $206.11
Maximum loss: $793.88 (1000-206.11)
Closed @ 24% capture ($56.11)
Yield on risked capital: 2%
Representing an annualized yield of 9%

As for Qualcomm (QCOM) It worked much faster than anticipated.  The stock had cratered on some lawsuit type news.  But as they sell chips to EVERYBODY EVERYWHERE, (and that this type of suit is frequent, and easily dismissed) I made my move.

CLOSED: QCOM - Qualcomm
5 contracts DEC $65/60 bull put spread 
Position open: 11-nov
Position closed: 28-nov
Position open: 17 days
Maximum Premium : $318.01
Maximum loss: $2181.99 (2500-318.01)
Closed @ 77% capture ($243.01)
Yield on risked capital: 11%
Representing an annualized yield of 229%

Now THAT's more like it!

Stay HUNGRY my friends!