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Options2Wealth
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I used to run a limited partnership, boutique hedge fund in the 90s. Retired in 2000 and moved from New York City to Toronto, Canada, got married, raised a family and basically settled down. After a few years in Toronto, my wife got tired of the city’s 8 months of cold weather and insisted that... More
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  • Option Positions (CALLS) Initiated In Sprint, SunPower And MEMC Electronics, Part 2 0 comments
    Jan 2, 2013 4:09 AM | about stocks: FSLR, S, SPWR, SUNE

    As I had mentioned, because of the market uncertainty related to the Fiscal Cliff issue, I thought it would be prudent to use just 50% of the allocated funds for now to initiate positions…therefore, here is a breakdown of my initial purchases:

    Sprint (NYSE:S): Of the $1500 (15% of the total account value of $10,000), I only used half of my allocation, or $750, to purchase the following:

    Bought 58 CALL contracts May 18, 2013, $6.00 Strike Price @ $0.12 at a cost of $696 + $54 (Commissions) = $750 ; Balance = $0

    Amount still remaining to be invested in S options: $750 + $0 = $750

    SunPower (NASDAQ:SPWR): Of the $4,000 (40% of the total account value of $10,000), I used half of the allocation, or $2000, to purchase the following:

    Bought 48 CALL contracts March 16, 2013, $6.00 Strike Price,

    @ $0.40 at a cost of $1,920 + $46 (Commissions) = $1,966 ;

    Balance = $34 to be carried forward and added to the allocated balance.

    Amount still remaining to be invested in SPWR options: $2,000 + $34 = $2,034

    MEMC Electronic Materials (WFR): Of the $2,500 (25% of the total account value of $10,000), I used half of the allocation, or $1,250, to purchase the following:

    Bought 34 CALL contracts April 20, 2013, $3.50 Strike Price,

    @ $0.35 at a cost of $1,190 + $36 (Commissions) = $1,226 ;

    Balance = $24 to be carried forward and added to the allocated balance.

    Amount still remaining to be invested in WFR options: $1,250 + $24 = $1,274

    I plan to complete the rest of my purchases on Wednesday and hopefully should be able to buy those options at reasonable prices.

    The next 6 months should be a lot of fun…

    kp

    P.S. I have included Ameritrade's real time images of Option tables with the appropriate purchase prices highlighted in magenta.

    (click to enlarge)

    (click to enlarge)

    (click to enlarge)

    DISCLAIMER: All postings made here are strictly for my personal record keeping and in no way, shape or form, am I even remotely suggesting others to follow my Buy and Sell moves. Trading options is definitely not for the faint of heart as one's portfolio can move up, or down, anywhere between 10%-30% during a single trading day. Feel free to follow my progress here, but PLEASE do not follow my moves. However, if, in spite of all my exhortations, should you decide to do so, be advised that you, and ONLY YOU will be responsible for any losses that you may suffer...In other words, the onus is strictly on you.

    Disclosure: I am long S, SPWR, WFR.

    Stocks: FSLR, S, SPWR, SUNE
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