Update Transaction - Multi-Fine Electronix (MFLX)

This position was rolled forward to August expiration. The new profit/loss info is below:


1/15/2010 -- Sold to Open 1 MFLX February $25 Put @ 1.2324
2/5/2010 -- Bought to Open 1 MFLX February $20 Put @ 0.4101
2/19/2010 -- Stock Bought Due To Option ITM @ $25.10
2/22/2010 -- Sold to Open 1 MFLX April $25 Call @ .2824
4/9/2010 -- Bought to Close 1 MFLX April $25 Call @ .2975
4/9/2010 -- Sold 100 MFLX @ 24.8295
4/9/2010 -- Sold to Open 1 MFLX May $25 Put @ 1.4399
5/7/2010 -- Bought to Close 1 MFLX May $25 Put @ 0.89
5/7/2010 -- Sold to Open 1 MFLX June $25 Put @ 1.37
5/25/2010 -- Bought to Close 1 MFLX June $25 Put @ 2.02
5/25/2010 -- Sold to Open 1 MFLX July $25 Put @ 2.55
6/24/2010 -- Bought to Close 1 MFLX July $25 Put @ 0.72
6/24/2010 -- Sold to Open 1 MFLX August $25 Put @ 1.60


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $23.77
Current Cost Average: $21.13
Commissions (Included In Cost): $39

Potential Annualized Gain If Called At Expiration (8/20/2010): 27.36%

Update Transaction - United States Natural Gas (UNG) (11/18/2009)

This is the other position which I sold the protective put. The performance metrics are below:

7/23/2009 -- Bought 100 UNG @ 13.14
7/23/2009 -- Sold To Open 1 UNG July $13 Call @ 0.88
8/22/2009 -- Call Expired
8/30/2009 -- Sold To Open 1 UNG October $14 @ 0.25
9/2/2009 -- Bought To Close 1 UNG October $14 @ 0.18
9/2/2009 -- Sold To Open 1 UNG January $12 @ 0.68
9/10/2009 - Bought To Close 1 UNG January $12 @ 0.9
9/10/2009 -- Sold To Open 1 UNG January $13 @ 1.29
11/6/2009 -- Bought To Open 1 UNG December $9 Put @ 0.41
11/18/2009 -- Sold To Close 1 UNG December $9 Put @ 0.5025

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $1353.00
Current Cost Average: $12.235

Downside Coverage: None

Possible Max Upside: 6.24%

Annualized Max Upside: 12.8%

Update Transaction - United States Natural Gas (UNG) (11/18/2009)

After UNG passed below the $9 mark, I decided to exit two of my put positions which I bought to further cover a decline in the price of UNG. I will most likely be selling some calls on my UNG positions over the next few weeks even if they have to be longer-term in order to justify the sale. The new profit/loss info is below:

7/2/2009 -- Sold To Open 1 UNG August $13 Put @ 1.15
8/21/2009 -- Stock Purchase @ $13
8/24/2009 -- Sold To Open 1 UNG October $13 Call @ 0.60
9/2/2009 -- Bought To Open 1 UNG October $8 Put @ .4275
10/16/2009 -- Option Expiration
10/20/2009 -- Sold To Open 1 UNG November $12 Call @ .45
11/6/2009 -- Bought To Open 1 UNG December $9 Put @ 0.41
11/18/2009 -- Sold To Close 1 UNG December $9 Put @ 0.5025


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Purchase Price: $1190.00
Current Cost Average: $11.185
Commissions (Included In Cost): $35

Possible Max Upside: 6.85%

Annualized Max Upside: 17.60%

Update Transaction - Intrepid Potash (IPI)

As the market continues to think about which direction it wants to go in, the agricultural stocks decided to move higher. As a result I rolled forward my November call position in IPI to December as the stock continues to have pretty high premiums, and has stayed somewhat detached from overall market movements as of late. I think this is a relatively good long term holding as potash companies should be seeing a rebound in demand sometime in the next 12 months as a result of the necessity of their product. Farmers cant go without fertilizer for too long without ill effects. My general rule for rolling a call to the next month is that I must maintain or increase my annualized gain, in this case I kept it almost exactly the same. The new profit/loss info is below:

7/30/2009 -- Bought 100 IPI @ 26.70
7/30/2009 -- Sold To Open 1 IPI $27 August Call @ 1.54
7/30/2009 -- Bought To Open 1 IPI $22 August Put @ 0.45
8/21/2009 -- Call Expired
8/24/2009 -- Sold To Open 1 IPI $28 September Call @ 0.7
8/26/2009 -- Bought To Open 1 IPI $21 September Put @ 0.25
8/31/2009 -- Bought To Close 1 IPI $28 September Call @ 0.10
8/31/2009 -- Sold To Open 1 IPI $27 October Call @ 0.50
10/1/2009 -- Bought To Close 1 IPI $27 October Call @ 0.10
10/8/2009 -- Sold To Open 1 IPI $27 November Call @ 0.70
11/12/2009 -- Bought To Close 1 IPI $27 November Call @ 0.71
11/12/2009 -- Sold To Open 1 IPI $27 December Call @ 1.41

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2561.00
Current Cost Average: $23.46

Previous Max Upside: 11.29%
New Possible Max Upside: 14.07%

Previous Annualized Max Upside:36.14%
Annualized Max Upside: 36.17%

Update Transaction - United States Natural Gas (UNG)(3)

The information regarding this transaction is noted in the previous post on UNG from today. This position is now uncovered, and protected on the downside with a $9 put. The new profit/loss info is below:

6/10/2009 -- Bought 100 UNG @ 14.50
6/10/2009 -- Sold To Open 1 UNG July $15 Call @ 0.97
7/6/2009 -- Bought To Close 1 UNG July $15 Call @ 0.15
7/17/2009 -- Sold To Open 1 UNG August $15 Call @ 0.45
8/22/2009 -- Call Expired
8/28/2009 -- Bought To Open 1 UNG October $10 Put @ 0.65
9/1/2009 -- Sold To Open 1 UNG January $14 Call @ 0.50
9/2/2009 -- Sold To Close 1 UNG October $10 Put @ 0.95
11/6/2009 -- Bought To Close 1 UNG January $14 Call @ 0.18
11/6/2009 -- Bought To Open 1 UNG December $9 Put @ 0.41


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $1353.00

Possible Max Upside: N/A

Annualized Max Upside: N/A

Update Transaction - United States Natural Gas (UNG) (2)

Information regarding this transaction is noted in the previous post on UNG. The performance metrics are below:

7/23/2009 -- Bought 100 UNG @ 13.14
7/23/2009 -- Sold To Open 1 UNG July $13 Call @ 0.88
8/22/2009 -- Call Expired
8/30/2009 -- Sold To Open 1 UNG October $14 @ 0.25
9/2/2009 -- Bought To Close 1 UNG October $14 @ 0.18
9/2/2009 -- Sold To Open 1 UNG January $12 @ 0.68
9/10/2009 - Bought To Close 1 UNG January $12 @ 0.9
9/10/2009 -- Sold To Open 1 UNG January $13 @ 1.29
11/6/2009 -- Bought To Open 1 UNG December $9 Put @ 0.41

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $1353.00

Downside Coverage: Covered below $9

Possible Max Upside: 2.14%

Annualized Max Upside: 4.39%

Update Transaction - United States Natural Gas (UNG)

As per the norm, UNG continues to drag down the CCIP at some points, and pull it up at others. UNG has plummeted from the $12 mark it was near at October expiration to near $9.50. As a result I decided to buy some December $9 put protection for all three positions, as well as buying back a January call for one of the positions which will be noted in another post. The new profit/loss info is below:

7/2/2009 -- Sold To Open 1 UNG August $13 Put @ 1.15
8/21/2009 -- Stock Purchase @ $13
8/24/2009 -- Sold To Open 1 UNG October $13 Call @ 0.60
9/2/2009 -- Bought To Open 1 UNG October $8 Put @ .4275
10/16/2009 -- Option Expiration
10/20/2009 -- Sold To Open 1 UNG November $12 Call @ .45
11/6/2009 -- Bought To Open 1 UNG December $9 Put @ 0.41


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Purchase Price: $1190.00

Possible Max Upside: 2.63%

Annualized Max Upside: 6.75%

Update Transaction - MEMC Electronics Materials (WFR) (10/27/2009)

I decided to do one post for essentially three transactions taking place on two days as it all has to do with the same event. On October 22, WFR released earnings after the market closed which were pretty disastrous. Now, this should not have been a surprise to most, as they had previously stated earnings would be horrible due to plant shutdowns they had during the quarter. However, the stock essentially fell off a cliff at which point I decided to buy back the $16 call I had sold, and sell a $15 November Call, to essentially break even if called at expiration. This was done when the stock was at about $14. Unfortunately, the stock continued to fall, reaching almost $12 at which point I decided to buy back the $15 call, and essentially wait for somewhat of a bounce in order to resell a call. I think the stock was punished more than it should have been, and this opinion was somewhat echoed by an upgrade the stock received simply based on the drop in price. The analyst noted that their target was $15, the stock had fallen almost 20% under that price and was thus undervalued (I consider this to be a smarter analyst than most, as most analysts wouldnt upgrade on such a price decline, even though it makes sense based on the target). I plan to resell a call once the stock gets somewhere above $13.50, hopefully sooner rather than later. The profit/loss info is below:

10/21/2009 -- Bought 100 WFR @ 15.76
10/21/2009 -- Sold To Open 1 WFR November $16 Call @ 0.81
10/23/2009 -- Bought To Close 1 WFR November $16 Call @ 0.25
10/23/2009 -- Sold To Open 1 WFR November $15 Call @ 0.40
10/27/2009 -- Bought To Close 1 WFR November $15 Call @ 0.20

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: 1495.00

Potential Gain If Called At Expiration: N/A
PotentialAnnualized Gain If Called At Expiration: N/A

Update Transaction - United States Natural Gas (UNG) (10/20/2009)

While UNG was still hovering around the $12 mark I decided to sell a $12 call for November, which was below the $13 call I had in October, but at this point Im simply trying to exit UNG at a profit. The performance metrics are below:

7/2/2009 -- Sold To Open 1 UNG August $13 Put @ 1.15
8/21/2009 -- Stock Purchase @ $13
8/24/2009 -- Sold To Open 1 UNG October $13 Call @ 0.60
9/2/2009 -- Bought To Open 1 UNG October $8 Put @ .4275
10/16/2009 -- Option Expiration
10/20/2009 -- Sold To Open 1 UNG November $12 Call @ .45


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Purchase Price: $1190.00

Possible Max Upside: 6.04%

Annualized Max Upside: 15.61%

Update Transaction - Direxion 3x Small Cap Bear (TZA) (10/19/2009)

As mentioned in my post on October 2009 expirations, the put I had sold in TZA was assigned as the current price was below the strike price. The stock managed to stay in the middle of the put spread I had put in place. I decided to sell a lower strike call on the new stock position, as I am neutral to bearish on the overall market at the moment. Since this stock is a triple-leveraged position, it is better to be safe than sorry, as a 5-10% increase in the overall market could wreak havoc on the position. The new profit/loss info is below:

9/14/2009 -- Sold To Open 1 $12.50 Strike Oct Put @ $1.10
9/14/2009 -- Bought To Open 1 $10 Strike Oct Put @ $.25
10/16/2009 -- Stock Bought @12.50
10/19/2009 -- Sold To Open 1 $11 Strike Nov Call @ 1.10

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $11.65

Possible Max Upside: 3.43%

Annualized Max Upside: 18.43%

Update Transaction - Intrepid Potash (IPI) (10/8/2009)

As I expected IPI rebounded nicely from a low around $22/share. Unfortunately, there was not a lot of time until October expiration and so the premiums for strikes as high as $27 were non-existent. As such, I decided to sell a $27 Nov call. The new profit/loss info is below:

7/30/2009 -- Bought 100 IPI @ 26.70
7/30/2009 -- Sold To Open 1 IPI $27 August Call @ 1.54
7/30/2009 -- Bought To Open 1 IPI $22 August Put @ 0.45
8/21/2009 -- Call Expired
8/24/2009 -- Sold To Open 1 IPI $28 September Call @ 0.7
8/26/2009 -- Bought To Open 1 IPI $21 September Put @ 0.25
8/31/2009 -- Bought To Close 1 IPI $28 September Call @ 0.10
8/31/2009 -- Sold To Open 1 IPI $27 October Call @ 0.50
10/1/2009 -- Bought To Close 1 IPI $27 October Call @ 0.10
10/8/2009 -- Sold To Open 1 IPI $27 November Call @ 0.70


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2561.00
Current Cost Average: $24.16

Possible Max Upside: 11.29%

Annualized Max Upside: 36.14%

Update Transaction - Intrepid Potash (IPI) (10/1/2009)

After a large decline in the price of Intrepid Potash I decided to buy back the October call in case the price of Intrepid Potash greatly recovered as the expiration date grew closer. I plan to resell the $27 call if the price of IPI recovers. If not, I will most likely sell a November call. The new profit/loss info is below:

7/30/2009 -- Bought 100 IPI @ 26.70
7/30/2009 -- Sold To Open 1 IPI $27 August Call @ 1.54
7/30/2009 -- Bought To Open 1 IPI $22 August Put @ 0.45
8/21/2009 -- Call Expired
8/24/2009 -- Sold To Open 1 IPI $28 September Call @ 0.7
8/26/2009 -- Bought To Open 1 IPI $21 September Put @ 0.25
8/31/2009 -- Bought To Close 1 IPI $28 September Call @ 0.10
8/31/2009 -- Sold To Open 1 IPI $27 October Call @ 0.50
10/1/2009 -- Bought To Close 1 IPI $27 October Call @ 0.70

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2561.00
Current Cost Average: $24.86

Possible Max Upside: N/A

Annualized Max Upside: N/A

Update Transaction - Marathon Oil (MRO) (9/14/2009)

As I was going to be on vacation the week after option expiration, I began to roll out positions in my portfolio to October so as to reduce the amount of cash sitting useless the week after expiration. This was the first position to be rolled out as part of this plan. Marathon Oil has stayed in a relatively tight range between 31 and 34 for the past month and a half and I expect it to stay in this range in the near future, as oil oscillates between 65 and 75. Rolling this CSP forward to October does not change the annualized return. The new profit/loss info is below:

8/24/2009 -- Sold To Open 1 MRO September $31 Put @ 0.70
9/14/2009 -- Bought To Close 1 MRO September $31 Put @ 0.33
9/14/2009 -- Sold To Open 1 MRO September $31 Put @ 1.03

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

Possible Max Upside: 4.52%

Annualized Max Upside: 30.53%

Update Transaction - United States Natural Gas (UNG) (9/10/2009)

After a large increase in the share price of UNG in the beginning of September, I decided I had slightly over reacted by selling a $12 call for January, and decided to roll my January CC up to a $13 strike increasing my potential profit from near zero to a respectable number. The performance metrics are below:

7/23/2009 -- Bought 100 UNG @ 13.14
7/23/2009 -- Sold To Open 1 UNG July $13 Call @ 0.88
8/22/2009 -- Call Expired
8/30/2009 -- Sold To Open 1 UNG October $14 @ 0.25
9/2/2009 -- Bought To Close 1 UNG October $14 @ 0.18
9/2/2009 -- Sold To Open 1 UNG January $12 @ 0.68
9/10/2009 - Bought To Close 1 UNG January $12 @ 0.9
9/10/2009 -- Sold To Open 1 UNG January $13 @ 1.29

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $1353.00

Downside Coverage: None

Possible Max Upside: 5.49%

Annualized Max Upside: 11.25%

Update Transaction - Intrepid Potash (IPI) (8/31/2009)

Intrepid Potash has been oscillating between about 22 and 26 dollars over the past few weeks, and with the the market continuing to drive higher with no intention of falling back, I decided to roll my IPI call to October at a slightly lower strike in order to hedge my risk as well as increase the risk of the stock being called away at October expiration. The performance metrics are below:

7/30/2009 -- Bought 100 IPI @ 26.70
7/30/2009 -- Sold To Open 1 IPI $27 August Call @ 1.54
7/30/2009 -- Bought To Open 1 IPI $22 August Put @ 0.45
8/21/2009 -- Call Expired
8/24/2009 -- Sold To Open 1 IPI $28 September Call @ 0.7
8/26/2009 -- Bought To Open 1 IPI $21 September Put @ 0.25
8/31/2009 -- Bought To Close 1 IPI $28 September Call @ 0.10
8/31/2009 -- Sold To Open 1 IPI $27 October Call @ 0.50



The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2561.00
Current Cost Average: $24.76

Possible Max Upside: 8.90%

Annualized Max Upside: 41.13%

Update Transaction - United States Natural Gas (UNG) (9/2/2009)

As I noted in my previous post regarding UNG, it would seem that the bottom has fallen out of natural gas recently. As such, I have decided to focus on simply recouping my losses rather than looking to make a hefty profit. As such I sold a $12 January call which is below my original purchase price. The performance metrics are below:

7/23/2009 -- Bought 100 UNG @ 13.14
7/23/2009 -- Sold To Open 1 UNG July $13 Call @ 0.88
8/22/2009 -- Call Expired
8/30/2009 -- Sold To Open 1 UNG October $14 @ 0.25
9/2/2009 -- Bought To Close 1 UNG October $14 @ 0.18
9/2/2009 -- Sold To Open 1 UNG January $12 @ 0.68

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $1353.00

Downside Coverage: None

Possible Max Upside: 0.10%

Annualized Max Upside: 0.21%

Update Transaction - United States Natural Gas (UNG) (9/2/2009)

The price of natural gas has continued to fall, and UNG has been a massive drag on the CCIP. I dont think anyone expected natural gas prices to continue falling, and the current regulatory issues facing UNG itself are not making things easier. As a result I had purchased a protective put against one of my UNG positions on 8/28/2009, and then sold it on 9/2/2009 after continued downward movement by UNG, as I result I have lowered my overall cost basis. I also sold a January call, as I dont foresee UNG rising very substantially in the near future as it still trades at a premium to its NAV. The new profit/loss info is below:

6/10/2009 -- Bought 100 UNG @ 14.50
6/10/2009 -- Sold To Open 1 UNG July $15 Call @ 0.97
7/6/2009 -- Bought To Close 1 UNG July $15 Call @ 0.15
7/17/2009 -- Sold To Open 1 UNG August $15 Call @ 0.45
8/22/2009 -- Call Expired
8/28/2009 -- Bought To Open 1 UNG October $10 Put @ 0.65
9/1/2009 -- Sold To Open 1 UNG January '10 Call @ 0.50
9/2/2009 -- Sold To Close 1 UNG October $10 Put @ 0.95


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $1353.00


Downside Coverage (from current price): None
Possible Max Upside: 11.6%

Annualized Max Upside: 19.34%

Update Transaction - Intrepid Potash (IPI) (8/26/2009)

As the stock market has started to turn downward recently, and China announcing its large purchases of commodities, which have been somewhat artificially driving up commodity prices, some of the commodity players have been falling in price. In order to hedge myself somewhat on the downside I decided to buy a $21 put for protection. The performance metrics are below:

7/30/2009 -- Bought 100 IPI @ 26.70
7/30/2009 -- Sold To Open 1 IPI $27 August Call @ 1.54
7/30/2009 -- Bought To Open 1 IPI $22 August Put @ 0.45
8/21/2009 -- Call Expired
8/24/2009 -- Sold To Open 1 IPI $28 September Call @ 0.7
8/26/2009 -- Bought To Open 1 IPI $21 September Put @ 0.25



The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2561.00
Current Cost Average: $25.16

Possible Max Upside: 11.29%

Annualized Max Upside: 80.78%

Update Transaction - United States Natural Gas (UNG) (8/24/2009)

In what I think is considered by most to be a continued fall of natural gas prices, UNG has become quite the laggard in the CCIP portfolio. On top of the horrible performance of natural gas prices, UNG itself is creating issues by its inability to offer new shares. This is actually a good thing in the short term because it keeps the price of UNG somewhat boosted above actual natural gas prices. Unfortunately, this also creates the possibility that if UNG is able to offer new shares, the ETF could fall 15% to make up for its current premium to NAV. As such, I have adopted a strategy of simply trying to gain as much option premium in the mean time. I expect to be stuck in this position for at least 6 months. The performance metrics are below:

7/2/2009 -- Sold To Open 1 UNG August $13 Put @ 1.15
8/21/2009 -- Stock Purchase @ $13
8/24/2009 -- Sold To Open 1 UNG October $13 Call @ 0.60


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Purchase Price: $1190.00

Possible Max Upside: 15.04%

Annualized Max Upside: 51.32%

Update Transaction - Intrepid Potash (IPI) (8/24/2009)

Intrepid Potash has stayed in a relatively tight range since I purchase it at the end of July. Earnings were in line with expectations and they had no real impact on the share price. It is important to note though that IPI has not participated in the overall market gains for the month of august. Due to the longer time period until expiration, I was able to sell a $28 Call as opposed to $27 like the previous month, and still get about a 3% premium. The performance metrics are below:

7/30/2009 -- Bought 100 IPI @ 26.70
7/30/2009 -- Sold To Open 1 IPI $27 August Call @ 1.54
7/30/2009 -- Bought To Open 1 IPI $22 August Put @ 0.45
8/21/2009 -- Call Expired
8/24/2009 -- Sold To Open 1 IPI $28 September Call @ 0.7


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2561.00
Current Cost Average: $24.91

Downside Coverage (from current price of $26.27): 5.17%
Possible Max Upside: 12.28%

Annualized Max Upside: 87.90%