This morning I said I would NOT buy my DSX options back for a loss since it looked like it was ready to rebound. It did – starting about seven minutes after I posted my analysis. I rose $1 which was nearly all intrinsic value for my naked puts, so I decided to exit with a profit. I still like DSX, but instead of writing a covered call on it, I’ll write new naked puts for February when the new contracts are posted on Monday.
I entered the position back on 10/18/07 and received $567.00 after commissions. This afternoon at 3:20, while DSX was trading at 29.17, I paid $352.99 to exit the position with a $214.01 profit. I started the day with a $200 paper loss on it. The rest of my December options are expiring out of the money leaving me with a great path for the next few weeks while I build up my February contracts. It’s nice to see Santa Claus decided to show up again this year.
These are my options expiring worthless:
Symbol Qty Description
+HPQXJ -2 HPQ Dec 50 Put
+UVAXZ -3 NVDA Dec 32.5 Put
+RLXL -2 RL Dec 60 Put
+FCNXJ -2 FCN Dec 50 Put