Initial Transaction - Direxion 3x Financial (FAS)

Another position was established in Direxion 3x Financial Bull ETF today to increase the total position in the portfolio to 400 shares which is still less than the largest position I have held in the ETF at any particular time. This time however, instead of simply selling the covered call I decided to collar the purchase for added downside protection. Although I am starting to believe that the market is in a consolidation mode and is forming a new bottom around 870 in the S&P, I still think there may be a pull back. If so, I want to have the put in place not as much for the purpose of protecting my downside, but instead to add additional revenue by selling the put for a gain. If the ETF does in fact drop to around $8, I plan to buy back the call, and keep the put in case of a further drop. This should effectively lower my cost basis to around $8.40 which would only leave $40 on the table if FAS closed under $8 at June expiration. Just as a note these positions are being posted a bit late as I have been away on business for the last week. I will try to get all my recent positions up on the blog today or tomorrow. The purchase info is below:

5/21/2009 -- Bought 100 FAS @ 9.045
5/21/2009 -- Sold To Open 1 FAS June $10 Call @ 0.86
5/21/2009 -- Bought To Open 1 FAS June $8 Put @ 1


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $904.50


Downside Coverage: Downside Risk Limited to 12.9% due to Put
Possible Max Upside: 8.89%

Annualized Max Upside: 107.96%