IOC plunged $13 intraday on Friday after RealMoney posted a story that called IOC officers scammers.

This is going to be brief tonight. I am fighting a strong bout of the flu.

The RealMoney compared IOC to BreX an ill-fated gold mining firm that continually pumped its reserves and the head geologist mysteriously fell out of a helicopter and died as the inquiries became more intense.

Link to RealMoney story

Link to Silicon Insider story

We were stopped out on the play at $62.50 and as far as I can determine it was bid $2.40 at the time. I was in bed with the flu and did not catch it until Saturday.

I raised the stops on CREE and FSLR and added an exit target on FSLR.

No new trades today.

Jim Brown



Current Portfolio



Current Positions


MOS - Mosaic
Bid to buy back the option at 25-cents or less.
Maintain the stop loss at $57.50.

FSLR - First Solar
Bid to buy back the option at 50-cents or less.
I raised the stop loss to $117.75.

IOC - Interoil
Stopped at $62.50 on Friday.

CREE - Cree Inc
I raised the stop loss to $68.50.

POT - No Change


New Recommendations


None Today


Margin Requirements:

There are several different formulas for determining margin requirements for naked put writing. These are normally broker specific and some can require larger margin requirements than others.

Here is the most common margin calculation for naked puts.

100% of the option premium + ((20% of the Underlying Market Value) - (OTM Value))

For simplicity of calculation simply use 20% of the underlying stock price and you will always be safe. ($25 stock * 20% = $5 margin)