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Exited JAVA's position with a huge success!

On April 7 2009, I posted the following:

"Yesterday, I purchased 1 block at 6.55 and wrote 100 May strike 5 at 2.00 for an intrinsic time value of .45/contract.  This isn't an anemic return in 51/2 remaining weeks to option expiration.  Besides, if the shares don't get called by expiration, holding the stock at 5 or below is nearly 4.50 points below the tender IBM offer!

These are the type of anomalies that I strive to look for."

ON April 8 2009, I posted the following:

Added an additional block of JAVA at 6.43, and wrote 100 April strike 6 calls at .79/contract for an intrinsic time value of .36/contract.  Not a bad hedge or return for little under 2 weeks to go for option expiration.  Talks between IBM and JAVA will once again resume, and shares of JAVA will trade north of 9/share.


I sold 2 blocks at 9.08, and "bought to cover" 100 May strike 5 calls at 4.15/contract, and "bought to cover" 100 May strike 6 calls at 3.10/contract.  On the strike 6 calls, I pocketed the intire intrinsic value.  On the strike 5 calls, i pocketed .40 out of the .45 intrinsic time value.  Overall, this trade was a huge suceess.