Tuesday, November 23, 2010

Synthetic Convertible Guy

Well it is the close of the trading day on Tuesday (11/23/2010) and I have been trading pretty actively over the last several sessions.   I am very happy with the success that my strategy has produced and I am confident that the trend will continue into the foreseeable future.   

I have made several changes to my portfolio including some adjustments to old positions and I have even moved forward into some other very interesting positions.    I think that most of these positions are still "low hanging fruit" for this complex strategy but walk before we run!   The complexities of this strategy can be morphed into futures, international equities, ETF's and so on.

Here is the way that my portfolio is looking right now:
     HGSI ($24.70) - Long Apr $25 Calls, short HGSI stock and then short Dec $23 and $22 Puts
     HRBN ($15.23) - Long Mar $20 Calls, short HRBN stock and then short Dec $15 Puts
     OREX ($5.90) - Short Jan $7.5 Calls, long OREX stock and long $3 Puts
     REGN ($29.99) - Long Feb $27 Calls, short REGN stock and short Dec $29, $24 and $22.5 Puts
     VVUS ($6.21) - Long Mar $5 Calls, short VVUS stock and short Dec $6 Puts

As of the close of business today ALL of my positions were positive thus far and here is a breakdown of the account summary as of close of business today:

Opening Account Value - $200,000
Commissions - ($875.48)
Profit/Loss - $2,388.40

Ending Account Value - $201,512.92

The ending account value represents a HPR (Holding Period Return) of three quarters of a percent in just a few days of trading!!!   VERY EXCITING

Synthetic Convertible Guy

1 comment:

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