NVDA Nov 35 Expires

At close yesterday, NVDA was parked at 32.45 and the Nov 35 call expired worthless. ‘Twas very nice to get paid 1.59 (commission adjusted) for the 2.5 weeks since the position was entered at 34.09. In fact, considering that NVDA finished pretty darn close to 32.5, the long position is just about breaking even since purchase.

It will be worth watching the Dec and Jan 35s over the next week or so for an opportunity to make another covered sale for NVDA. Of course, that assumes NVDA stays in it’s current range and doesn’t continue shedding value with the rest of the market.

Current Positions:

Symbol	Current Price	Month	Strike	Notes
CYBS	15.73	Jan	17.5
WFMI	45.31	Jan	52.5	Div. expected in Jan.
ACAS	38.92	Feb	45	Div: 1.00 on 1/16/08
EGLE	27.56	Mar	35	Div: .50 on 11/28/07
NUAN	19.15	Apr	25
NVDA	32.45	none

There should be no surprise that most of the calls sold have also dropped in value in concert with retractions by the underlying securities. Most notably, the EGLE Mar 35 is asking 1.45, which is almost 2.00 less than what it was sold for. Should the underlying security continue to trace lower prices, one could make a compelling argument to buy the Mar 35 back with a notion of selling it again when (if) EGLE makes a recovery. One might also keep an eye on the NUAN Apr 25 (asking 1.00 vs 1.99 sold). Unlike the notional Buy Only investor in this comparison, the Buy (Hold) and Write investor actually has something to cheer about in down markets!

Performance of BHW vs BO:*

BHW: 1,424 (cash) + 17,912 (long positions) = $19,336 (port value)

BO: 225 (cash) + 17,912 (long positions) = $18,137 (port value)

* BHW = Buy (Hold) and Write strategy; BO = Buy Only strategy

Both positions adjusted for commissions.