Hey everyone. Had another awesome month. The market has been really awesome lately... but that could change at any moment. Hopefully the uptrend will last another 4 weeks at least! At September expiration my SNDA shares were called away. Let's do a bit of analysis on whether I made any money on my SNDA stock and options trades, despite being assigned the stock and having it called away subsequently. Here are the relevant trades:
| Execution Date | Action Description | Quantity | Symbol | Description | Price | Commission | Reg Fees | Total Cost | | 7/20/2009 9:30 | Sell To Open | 4 | .QKUTJ | SNDA AUG 50 Put | $2.00 | $14.95 | $0.04 | $785.01 | | 8/21/2009 8:04 | Buy | 400 | SNDA | Option Assignment | $50.00 | $14.95 | $0.00 | ($20,014.95) | | 8/21/2009 8:04 | Buy To Close | 4 | .QKUTJ | SNDA AUG 50 Put | $0.00 | $0.00 | $0.00 | $0.00 | | 8/25/2009 9:33 | Sell To Open | 4 | .QKUIJ | SNDA SEP 50 Call | $2.60 | $14.95 | $0.05 | $1,025.00 | | 9/18/2009 8:09 | Sell | 400 | SNDA | Option Assignment | $50.00 | $14.95 | $0.52 | $19,984.53 | | 9/18/2009 8:09 | Buy To Close | 4 | .QKUIJ | SNDA SEP 50 Call | $0.00 | $0.00 | $0.00 | $0.00 |
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As you can see, it all started when back in July I sold the Aug 50 puts (for $785.01), which ended up in the money at expiration. I was assigned 400 shares of SNDA stock on August 21, which cost me $20,014.95. I promptly sold September calls against the shares on August 25, netting a cool $1,025.00. SNDA's price then shot straight up, causing the forced sale of my shares at $50, for proceeds of $19,984.53. If you add up all the numbers, you're left with a total profit of $1,779.59. Not bad, considering the volatility. As a comparison, let's see what might have happened had I not been using options. Considering that I was bullish back on July 20, I might have bought 400 shares of SNDA straight-up. The low of the day was $54.65, but, I probably wouldn't have gotten so lucky (the high of the day was $60.23!), but let's just say that I was the luckiest guy in the market and bought all 400 shares at the low. If I had held on until September 18 and sold at the high of the day ($55.38) I would have made a whopping $0.73 per share, for a total of $292.00 before commissions! Yeah, I think I'll stick with options :)
All my other September options (puts) expired out of the money, allowing me to keep their full premiums totaling $2,952.42. I started a bit early this month, selling my October puts last week even before the Septembers officially expired. Here are the goods for this month:
| Execution Date | Action Description | Quantity | Symbol | Description | Price | Commission | Reg Fees | Total Cost |
| 9/18/2009 15:24 | Sell To Open | 33 | .FVI | F OCT 6 Put | $0.11 | $49.50 | $0.14 | $313.36 |
| 9/17/2009 12:12 | Sell To Open | 9 | .BCSVX | BCS OCT 22.5 Put | $0.50 | $14.95 | $0.06 | $434.99 |
| 9/17/2009 11:38 | Sell To Open | 4 | .DTJVR | DLTR OCT 45 Put | $0.60 | $14.95 | $0.03 | $225.02 |
| 9/17/2009 11:29 | Sell To Open | 16 | .NDNVV | NDN OCT 12.5 Put | $0.20 | $24.00 | $0.07 | $295.93 |
| 9/17/2009 11:05 | Sell To Open | 5 | .NGHVH | NTES OCT 40 Put | $0.60 | $14.95 | $0.03 | $285.02 |
| 9/17/2009 11:04 | Sell To Open | 4 | .QKUVI | SNDA OCT 45 Put | $0.70 | $14.95 | $0.03 | $265.02 |
| 9/17/2009 10:46 | Sell To Open | 13 | .HGGVC | HGG OCT 15 Put | $0.85 | $19.50 | $0.08 | $1,085.42 |
| 9/17/2009 10:07 | Sell To Open | 16 | .OFGVV | OFG OCT 12.5 Put | $0.45 | $24.00 | $0.08 | $695.92 |
| 9/17/2009 10:02 | Sell To Open | 8 | .SQRVE | STEC OCT 25 Put | $0.45 | $14.95 | $0.04 | $345.01 |
Grand total: $3,945.69. Let's see how much of it I end up keeping in October!
