MRO Rising

I had another good day today (up $1200+) as the time value on my 20 options erodes running up to the February expiration.  With stocks rebounding still I’ve also gained on intrinsic value going my way finally. 

AA is getting tricky again and I might have to exit part f it tomorrow, unless I decide to sell another put to get me in deeper (not likely).

I decided to take a loss on part of my MRO options today too.  Luckily I’m long 200 shares still as MRO has risen nearly $9 from its low on January 23rd, just five days ago. I took the risk that day and sold extra calls on my shares – It was on the capitulation day which I should have known better than to give in that day, but now it’s done.

While MRO was trading at $51.89 this afternoon, I sucked it up and took a loss on my Feb 45 (MROBI) calls and paid $1471.89 with commissions after only taking in $368.50 when I originally sold them.  Once MRO turned and confirmed its upward momentum, I should’ve taken my loss then.  But when it dipped a little I got my hopes up and then after gapping up today I knew to take my loss.  Had I been thinking clearly I would’ve done it on the dip since I didn’t actually think MRO would go back down to 45 again in the near term. My option only had about $0.40 of time value left, so I didn’t leave much on the table.  Also, MRO closed up from when I got out.  I still have 200 shares and two covered calls and two more naked puts at the 50 strike.  I fully expect to be out of MRO in another 13 trading days.

I’m still expecting to be cash flow positive for January since most of my losses are still just on paper.  AA is the only other one I still need to bite the bullet on and that might come as soon as Wedneday.