Position Updates

Updates for positions with legs expiring today. More to come.
[private_monthly]

Stock / Symbol: [private_monthly]Cheniere Energy / LNG [/private_monthly]
Option Strategy: covered strangle
Trade entry date: July 18th
Price at trade entry: $9.85
Price at this post: $7.40

Position:
[private_monthly]

Long 100 shares of LNG
Short -1 LNG Aug11 10 Call
Short -1 LNG Aug11 8 Put
for an effective cost of $8.78 per share

Update: Although [private_monthly]LNG [/private_monthly] is down 25% since we entered the postion, we're actually only down 16% due to the way we structured the trade. With the stock most likely to close under $8 today, our short put will be exercised and we'll be long an additional 100 shares at $8 per share. This will lower our cost basis down to $8.39 per share. Next week, we'll look to sell either the 8 or 9 strike Sep calls against the position to further lower our cost basis.

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Stock / Symbol: Anadarko Pete Corp / APC

Option Strategy: bear call spread
Trade entry date: July 18th
Price at trade entry: $82.71
Price at this post: $67.40

Position:
[private_monthly]
Short -4 APC Aug11 92.5 Calls
Long 4 APC Aug11 95 Calls
for a net credit of $0.18 per contract

Update: This position will easily expire worthless today, yielding us the full 7.76% return on the trade.

Max Risk: $928
Max Reward: $72 or 7.76% by Aug 19th
Profit Range: $0 - $92.67
Realized Profit / Loss: $72 or 7.76%
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Stock / Symbol: [private_monthly]Las Vegas Sands / LVS [/private_monthly]

Option Strategy: calendar call spread
Trade entry date: Nov 4, 2010
Price at trade entry: $50.81
Price at this post: $42.07

PosItion:
[private_monthly]
Long 2 LVS Sep 52.50 Calls
Short -2 LVS Aug11 52.5 Calls
at an effective cost of $3.02 per contract
[/private_monthly]

Update: The Aug 52.50 calls we sold will expire worthless today so we'll keep in the full premium we took in. Next week, we'll adjust the position to give us more time on the trade.
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Stock / Symbol: [private_monthly]BroadCom / BRCM[/private_monthly]

Option Strategy: diagonal call spread
Trade entry date: Feb 24th
Price at trade entry: $40.69
Price at this post: $32.25

Position:[private_monthly]
Long 2 BRCM JAN12 40 Calls
Short 2 BRCM Aug11 40 Calls
for an effective cost of $4.62 per contract
[/private_monthly]
Update: The Aug11 40 calls we sold will expire worthless today. We'll look to sell additional near term calls with the stock trading back up around 35.

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Stock / Symbol: [private_monthly]American Express / AXP [/private_monthly]

Option Strategy: calendar call spread w/ protective call
Trade entry date: Aug 15th
Price at trade entry: $45.87
Price at this post: $44.63

Position:
[private_monthly]

Long 2 AXP Jan12 45 Calls
Short -2 AXP Aug11 45 Calls
Long 2 AXP Jan12 55 Calls
for an effective cost of $4.23 per contract
[/private_monthly]
Update: We're currently up about 20% on this trade. It's looking like [private_monthly]AXP[/private_monthly] will close under $45 today, which will allow us to write another near term 45 strike call next week. If the stock is trading over $45 later today, we'll look to close the trade for a nice, quick profit.

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