Research Today

I have started research for opening a new CC account next Weds. I am reviewing two types of positions: 1) deep ITM calls on blue chip stocks (10+%) downside protection and 2) ATM positions on other blue chip stocks. The first category includes review of stocks like: NUE, APA, RIMM, AUY and the second category includes stocks like: WMT, MCD, COST. I will not be buying several stocks within the same sector. Will continue review thru next Tues/Weds AM before any decisions. The market is so volatile now that continual review is necessary.

BMY Bought and Sold CC

BMY bought for play on dividend

BTO BMY 100 Shares @ $1995.74 includes commission
BTO 20BMYJul08 @ 0.4 Net $31.74
Goes Ex-Dividend 2 Jul - Dividend is 0.31 per share
YieldsIf Called for Dividend 1% in 6 days 4.76% per month or 57.1% per year
If not called for dividend 3.1% if exercised Jul

Bad Day for Account Values

The market today was really rough on account values. AUY and JRCC both helped my bottom line today. However, JRCC has been hard hit this week. I am glad I sold JRCC CCs deep ITM (@50).

PMI Bought Back and Watching TIE Dec 08

BTC 5PMIJan09 @ 0.60 Net after commissions $43.49
Represents 4.5% against original purchase price
Income to date has break even point at $7.65 per share

Watching TIE
STO 15TIEDec08 @ 2.15 net of $206.74 after commisions
Currently at bid 1.70 and ask 1.80
Price and MAs are stacked down indicating it should continue down some more before reversing, will have to watch to capture what ever income I can.
Current break even point is $16.41 without any income from Dec08 position.

PMI - Watching Jan 09 CC

I am watching 5Jan09 CC on PMI for buy back. I sold the Jan 09 for 1.20 per share an it is currently at 0.50 bid and 0.60 ask. I would like to ride it on down but will buy back immediately if it starts back up. I bought the CC late May. PMI is one of the dogs I am managing: paid 9.71 per share and have generated $162.70 income to date without the 5Jan09 income. Still along way to go to break even. Really need some appreciation in the current stock price to help.

XHB and AUY Additional Calls Sold Today

STO 1 contract 16 AUYJul 08 0.30 net $21.74
Uncalled 1.3%
Will post called when closed, several months of calls

STO 1 contract 19 XHBJul08 0.40 net $31.74
Uncalled 1.6%
Will post called when closed, several months of calls

Decided to take the lower near month income rather than sell out month and buy back for higher return - near term is lower risk and requires less management effort

JRCC, AUY, SCHW, LDK, VLO Actions Today

BTO 200 shares JRCC @60.44 $12088
STO 2 contracts 50 JRCCJul08 @12.5o $2490.48 after commissions
Uncalled 20.6% Good downside protection
Called 3.2 %
Bought to be called

STO 2 contracts 15 AUYJul08 @ 0.50 net $90.49
Uncalled 3.11%
Called will be higher with all income to date. Will report when called

STO 1 Contract 40 LDK @ 2.50 net $241.74
Uncalled 5.3%
Called at 40 will be loss for Jul only but with Jun call income will be net 1.5%

STO 1 contract 22.5 SCHWJul08 @ 0.55 net $46.74
Uncalled 2.1%
Called will be reported when called have had for several months

STO 1 contract 50 VLOJul08 @ 0.38 net $29.74
Uncalled 0.6%
Called will be reported when called since bought last month

JRCC Coal - Looking at for Buy Tomorrow

JRCC current price $59.96
50 Jul 08 Call - Bid 12.10 Ask 13.10
Good Downside Protection
Altman Z = 3.2
Chart in Stack Up

Will see how it opens tomorrow and make final decision.