RMBS - Adjustment

The following adjustment was made today on RMBS:

27-Dec-06 - Buy Back & Roll Out/Down - BTC 2 Jan07 25.00 Call @ -0.16
27-Dec-06 - Continued Trade - STO 2 Feb07 22.50 Call @ 1.04

The Jan07 25 Call had very little time value left so I bought it back and rolled out to Feb07 and down to the 22.50 strike. RMBS was down as much as 73% in Aug06. By dollar cost averaging I reduced the cost basis to $26.55. This position is currently down about 29% from the new cost basis, excluding option premiums.

Current Position Summary:

Stock Investment: $5,310.00
Income Generated: $1,427.50
Percent Income Generated: 26.88%
Net Profit If Called: $617.50
Percent Return If Called: 11.63%
Annualized Return If Called: 14.24%
Days to Expiration: 298 days

Trade History:

24-Apr-06 - Initial Stock Position - BTO 100 RMBS @ 38.33
24-Apr-06 - Initial Call Option - STO 1 May06 35.00 Call @ 7.49
23-May-06 - Continued Trade - STO 1 Nov06 35.00 Call @ 3.09
25-Jul-06 - Buy Back - BTC 1 Nov06 35.00 Call @ -0.26
25-Jul-06 - Dollar Cost Averaging - BTO 100 RMBS @ 14.77
25-Jul-06 - Combined Cost Basis - $5,310.00 200 @ 26.55
25-Jul-06 - Continued Trade - STO 2 Jan07 25.00 Call @ 1.09
27-Dec-06 - Buy Back & Roll Out/Down - BTC 2 Jan07 25.00 Call @ -0.16
27-Dec-06 - Continued Trade - STO 2 Feb07 22.50 Call @ 1.04