Forex Is Crazy

http://screencast.com/t/R81FnmwbwGEL

Continuing my recent them of doing short puts on companies I have owned and liked in the past at higher prices, sold the Dec 21 puts on VALE today for $0.22. I like the chart showing that this was near the low of the past 9 months.

Essentially the same trade that worked well last week so giving it another go. Sold the 55 Puts for $0.57 and the 52.5 Puts for $0.20.

New position initiated today. Had AA in my portfolio awhile back, sold it for $15 earlier this year so I'm a willing buyer for $9.

Bought back my short Nov 20 calls and rolled to Jan 20 for a credit of $1.85. Considered seeing if these will expire worthless this Friday, but decided that I do not want to take risk of a lot of IV disappearing after jury decision which could come at any time. Furthermore if Rambus loses the case the share price will tank, so this credit provides a lot of protection against that event. Still have 1/2 of my shares covered with strike 18 calls, will let those ride through expiration and see what happens.

Initiated this short PUT position today for December expiration. Break even at expiration is $28.34 which is not too much higher than the 9 month low of $27.85. May be a little volatile with the mess in Europe but that is why the premium is pretty good and gives a chance to make close to $2000 if these .20 delta options expire worthless.

E-mail: JasonAndrewHaas@aol.com Tweet

New position just initiated near end of day Monday. Sold the weekly MOS 55 put for $0.21. The motivation and theory behind this trade is essentially the same as the POT naked put from last week. MOS is a stock I have owned before and am comfortable buying at 55 if I am assigned. Did 5 contracts so it's just a small gain if it works out, but odds are favorable showing only 13.6% probability of my being assigned at the moment.

http://screencast.com/t/NZASNaLfNx

http://screencast.com/t/ZfxPoUpm