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Selling Covanta Calls On My Holdings

|Includes: Covanta Holding Corporation (CVA)

(portpro holding CVA)

As of this morning:

I wanted to sell December $17.50 December Calls on this holding. In my accounts I have 850 (Brokerage, net cost $13408.37) and 400 (tax deferred, cost $6741.89, received as the result of short put positions which were exercised (300 shares), total of $20150.26 invested in this trash hauling green energy producer which burns trash for energy. I have sold one covered call contract in the tax deferred account for net 0.85 per share.

Total of 1250 shares. I am short 1 of the $17.50 calls. My targeted number of shares here as a covered call, is 1188 shares.

Today I wish to cover all shares and reduce to 1200. Earlier in the day I placed an order to STO CVA121222C00017500, which was forced lower to execute at 60 cents for a net of 59.73.

I am now placing a time dependent order to execute tomorrow at 9:45, the order is to sell 50 shares in the brokerage (taxable) account. I bought those 50 shares at 819 dollars or 16.38 per share cost price on 20120323, 11:57:30. I will make notes on this tomorrow.

While I target to sell CVA121222C00017500 at: Recent bid/ask: $0.65/$0.80, Aim for $0.70 per contract; as prices change, ideally accept no less than $0.60, perhaps arrangements below that will be made but not for now. I have the ability to sell up to 10 more contracts. I will be doing this live as best I can but tomorrow is a good opportunity to try to put on at 60-85 cents.


Disclosure: I am long CVA.

Additional disclosure: Covanta position is 2.37% of the portfolio, bullish