Locking Profit in a Down Market

Spent $97.22 today to close out some more of the call positions, as follows:

• Bought the ACAS Feb 45 call for .15 ($25.74 after commissions), an 86% gain from the commission adjusted $1.79 earned exactly 2 months ago on Oct. 31.
• Bought the EGLE Mar 35 call for .30 ($40.74 adjusted), an 88% gain from the $3.39 adjusted sale back on Oct. 29.
• Bought the NUAN Apr 25 call for .20 ($30.74 adjusted), which is almost an 85% gain from the adjusted $1.99 sale on Oct. 25.

The EGLE and NUAN buy-backs still have time to look like wise moves. Any decent rebound in those markets should present opportunities to write some juicy calls prior to March or April.

The ACAS repurchase was probably a waste of $26. At this moment, it is trading at 34 and change, and it seems unlikely that it would exceed 45 in the next 7 weeks (when the Feb 45 would have expired). However, if it makes a little push to 37 or so, one might be able to sell the May 40 for 2.50 or thereabouts.