Closed AMAT Naked Puts and Calls

I closed out my AMAT exposure at the end of Monday’s trading day, prior to earnings release Tuesday after close. 

Originally, I sold May 20 naked puts (ANQQD) on AMAT when it was at 21.  Less than two weeks later AMAT was down to 18.90 and I sold May 20 naked calls (ANQED) on it.  Today AMAT inched up all day and was around 19.80 when I decided to cut my risk and get out while I could.  I ended up making an $8.02 profit.  I’m not sure which direction AMAT will move after earnings are released.  If it flattened out around 20 I’d have been sitting pretty, but I decided the risk was too great that it would shoot farther than my premiums would cover.  Depending how earnings go tomorrow, I might get right back in on Wednesday morning when the risk has been reduced.

Here’s how my trades broke down:

Date/Time                           Description                              Amount
04/03/2008  13:13:12          Sold 4 ANQQD @ 0.8                $307.00
04/14/2008  09:37:32          Sold 4 ANQED @ 0.55               $207.00
05/12/2008  15:49:54          Bought 4 ANQED @ 0.45           $(192.99)
05/12/2008  15:50:49          Bought 4 ANQQD @ 0.75          $(312.99)
                                                                                                
                                                                                Profit  $8.02