Trading summary: busy day

The price of oil is still falling like a stone, but my heart is NOT made of stone. I have started dabbling in oily and oil correlated positions.  The price of oil may very well have a few more percent of downside to go, but even the Saudis said they will start to panic at $40 per barrel.

Here's my trading brick of the day:

1st up: USO - United States Oil fund.  It's an ETF that's pegged to the price of oil.  I purchased 100 shares and sold a covered call to lower my cost basis.

Average price: $17.60 (including commissions).  Hopefully oil will stabilize soon and this will bounce up a bit.  Not before my calls expire worthless though!

Currently I'm long 200 shares of USO with a covered call with a $21 strike and another (opened today) with a $18 strike.  My average cost on USO is $18.80.  (Not yet adjusted for call premium)

2nd up: SNDK - Sandisk. The company that makes memory cards and solid-state hard-drives for computers.

I've traded this on and off over the years and today they revised their quarterly guidance DOWN by 4% but the stock plunged 14%.  That seems like just "a bit" of an over-reaction to me, so I opened 2 positions on 2 different months.  Very juicy premium because of the bad news.

3rd: Disney - Closed a successful position.
49% caputre
74% Rate of return
14% return on capital
Position open 70 days.

4th: CPG - Cresent point energy
This is a position I recently entered sadly before the oil price implosion.  My average price on the stock is $35.50 so I sold 2 lousy covered calls for $38 each.  I'm chipping away at my cost basis and the dividends haven't been cut (yet) and that pays another $46 monthly on my 200 shares.

So I'm still grinding out gains, one day at a time.

Stay HUNGRY my friends!