Option Investor
Newsletter

Portfolio Activity

HAVING TROUBLE PRINTING?
Printer friendly version

A Fortuitous Rally!

Friday's strong rally in equity values helped many of the bullish positions in the CCS Portfolios and our conservative group of candidates benefited the most with 29 possible winners of out 31 selections, averaging a 2.69% potential gain, during the April options expiration period. At the same time, the market's current lofty levels may be difficult to sustain in the short-term so we are going to be very selective this week and wait to see whether the recent buying pressure continues.

Regarding the current issues in our hypothetical (for educational purposes) covered-call portfolio, here is situation for each trade:

*****

LONG CSIQ Stock and SHORT MAY-22.50 Call
Cost Basis = $21.00 (higher than we expected...)
Maximum Profit = 7.2% (without margin)
STOCK CHART

CSIQ stock closed at $26.08 on 4/18/08, thus no action is needed.

*****

LONG EGY Stock and SHORT MAY-5.00 Call
Cost Basis = $4.50
Maximum Profit = 11.1% (without margin)
STOCK CHART

EGY stock closed at $6.57 on 4/18/08, thus no action is needed.

*****

LONG PGI Stock and SHORT MAY-$15.00 Call
Cost Basis = $13.50
Maximum Profit = 11.1% (without margin)
STOCK CHART

PGI stock closed at $15.43 on 4/18/08, thus no action is needed.

*****

LONG CCC Stock and SHORT JUL-$15.00 Call
Cost Basis = $14.15
Maximum Profit = 6.00% (without margin)
STOCK CHART

CCC stock closed at $15.61 on 4/18/08, above the sold strike and profitable again, however the position has previously been closed due to short-term bearish activity.

*****

LONG KGC Stock and SHORT APR-22.50 Call
Cost Basis = $21.85
Maximum Profit = 2.90% (without margin)
STOCK CHART

KGC stock is trading near $23.82 as of 4/18/08, at maximum profit, however the position was previously closed due to short-term bearish activity.

*****

Covered Call System Newsletter Archives