{"id":62,"date":"2010-05-07T11:48:02","date_gmt":"2010-05-07T15:48:02","guid":{"rendered":"http:\/\/www.cheapiv.com\/?p=62"},"modified":"2010-05-07T11:53:59","modified_gmt":"2010-05-07T15:53:59","slug":"position-update-cop","status":"publish","type":"post","link":"http:\/\/www.cheapiv.com\/?p=62","title":{"rendered":"Position Update – COP"},"content":{"rendered":"

In the week ahead from 4-26 we talked about taking profit in a oil stock -COP.\u00c2\u00a0 We had uncovered it via an analysis of the oil index and the technical picture jumped out at us.<\/p>\n

On 4-26, we suggested rolling the May 55 Call to the June 60 call to lock in profit.\u00c2\u00a0 The stock has since fallen off from a high of $60.53 to roughly $54.3 today May 7th.<\/p>\n

Results of Trade Below Chart
\n<\/strong><\/h3>\n

\"\"<\/a><\/p>\n

Results<\/strong> [private_free]<\/p>\n


\n<\/strong><\/p>\n

The June 60 Calls are still trading for $0.63 because implied volatility has popped\u00c2\u00a0 from 26 to 41.<\/p>\n

After the initial roll we locked in a profit of $2.57 and rolled up for the same cost as our initial trade. Now we have ability to get out of the stock that is down over $5 and the option has only lost half of it’s value.\u00c2\u00a0 This is a nice little gift.<\/p>\n

Bought the May 55 calls for $1.10<\/strong><\/p>\n

Sold the May 55 calls for $3.67 Profit of $2.57
\n<\/strong><\/p>\n

Bought the June $60 calls for $1.13<\/strong><\/p>\n

Sold June $60 calls for $0.63 Loss of $0.50<\/strong><\/p>\n

Total Profit is $2.07\u00c2\u00a0 on a $1.10 investment.<\/strong> This is 88% return on investment.<\/strong><\/p>\n

[\/private_free]<\/p>\n

Register Below:<\/strong><\/p>\n

[register_free]<\/p>\n","protected":false},"excerpt":{"rendered":"

In the week ahead from 4-26 we talked about taking profit in a oil stock -COP.\u00c2\u00a0 We had uncovered it via an analysis of the oil index and the technical picture jumped out at us. On 4-26, we suggested rolling the May 55 Call to the June 60 call to lock in profit.\u00c2\u00a0 The stock […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,5,19],"tags":[13,11,17,39,8,38,9,12,10],"class_list":["post-62","post","type-post","status-publish","format-standard","hentry","category-cheap-iv","category-trades","category-week-ahead","tag-calls","tag-implied-volatility","tag-market","tag-morph","tag-options","tag-roll","tag-stocks","tag-strategy","tag-volatility"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts\/62","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=62"}],"version-history":[{"count":0,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts\/62\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=62"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=62"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=62"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}