After a 19% drop in Continenal Airlines since the June call was sold, I decided to buy back the call and hope for a rebound in CAL in order to sell the same call again for a higher price. Unfortunately, recent higher oil prices are great for the oil stocks but tend to wreak havoc on the airline stocks. I plan to attempt to resell the call if it reaches about $0.60, if not I may have to sell a July call. The new profit/loss projections are below:
4/14/2009 -- Bought 100 CAL @ 12.225
4/17/2009 -- Sold To Open 1 CAL May $11 Call @ 2.17
5/15/2009 – May $11 Call Expired
5/18/2009 – Sold To Open 1 CAL June $11 Call @ 1.055/27/2009 -- Bought To Close 1 CAL June $11 Call @ 0.3
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $1222.50
Downside Coverage From Current Price (9.00): None
Possible Max Upside: Unlimited
Annualized Max Upside: N/A
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