Sunday, June 21, 2009

PFCB - Adjustment

The following adjustment was made Friday on P.F Chang's (PFCB):

19-Jun-09 - Option Exercised - EX 1 Jun09 25.00 Call @ 25.00 -
19-Jun-09 - Cash to Secure Put - CSP 100 PFCB @ 25.00 -
19-Jun-09 - Initial Put Position - STO 1 Oct 25.00 Put @ 1.34 -

The Jun09 25.00 call was deep ITM and was going to be exercised after the market closed, since this was expiration Friday. In order to roll out the calls for a net credit, I would have had to average down another 100 shares, which meant an additional $3,186 investment. I didn't want to increase my investment in PFCB by that much so I decided to try a new strategy. I would allow the call to be exercised and then re-enter the 100 share position by selling 1 cash secured put, in lieu of averaging down. So, in anticipation of having both Jun09 25.00 call exercised and receiving $2,500 from the sale of 100 shares, I sold 1 Jul09 25.00 put, secured by $2,500 in cash. This resulted in no additional investment since the $2,500 to secure the put was offset by the $2,500 from the proceeds of the sale. If the Jul09 put is assigned I'll own 100 shares of PFCB again and will continue to sell a call. If not assigned, I'll continue selling a put.

Current Position Summary:

Stock Investment: $3,578.00
Income Generated: $901.30
Percent Income Generated: 25.19%
Annualized Income Generated: 11.67%
Net Profit If Expired: -$176.70
Percent Return If Expired: -4.94%
Annualized Return If Expired: -2.29%
Days Held to Expiration: 788 days

Trade History:

20-Aug-07 - Initial Stock Position - BTO 100 PFCB @ 35.78 - Called
20-Aug-07 - Initial Call Option - STO 1 Sep07 35.00 Call @ 2.30 - Expired
24-Sep-07 - Continued Trade - STO 1 Oct07 35.00 Call @ 0.39 - Expired
25-Oct-07 - Continued Trade - STO 1 Jan08 35.00 Call @ 0.22 - Expired
24-Jan-08 - Interim Trade - STO 1 Feb08 30.00 Call @ 0.65 - Expired
21-Feb-08 - Interim Trade - STO 1 Mar08 30.00 Call @ 0.74 - Expired
25-Mar-08 - Continued Trade - STO 1 Apr08 35.00 Call @ 0.34 - Expired
24-Apr-08 - Continued Trade - STO 1 Jun08 35.00 Call @ 0.49 - Expired
24-Jul-08 - Interim Trade - STO 1 Sep08 30.00 Call @ 0.63 - Closed
12-Sep-08 - Buy Back & Roll Out - BTC 1 Sep08 30.00 Call @ -0.06 -
12-Sep-08 - Interim Trade - STO 1 Oct08 30.00 Call @ 0.09 - Expired
20-Oct-08 - Interim Trade - STO 1 Nov08 22.50 Call @ 0.34 - Expired
24-Nov-08 - Interim Trade - STO 1 Dec08 20.00 Call @ 0.34 - Closed
10-Dec-08 - Buy Back and Roll Out/Up - BTC 1 Dec08 20.00 Call @ -3.11 -
10-Dec-08 - Interim Trade - STO 1 Apr09 25.00 Call @ 2.89 - Closed
14-Apr-09 - Buy Back and Roll Out - BTC 1 Apr09 25.00 Call @ -2.55 -
14-Apr-09 - Interim Trade - STO 1 May09 25.00 Call @ 3.49 - Closed
04-May-09 - Buy Back and Roll Out - BTC 1 May09 25.00 Call @ -6.89 -
04-May-09 - Interim Trade - STO 1 Jun09 25.00 Call @ 7.37 - Exercised
19-Jun-09 - Option Exercised - EX 1 Jun09 25.00 Call @ 25.00 -
19-Jun-09 - Cash to Secure Put - CSP 100 PFCB @ 25.00 -
19-Jun-09 - Initial Put Position - STO 1 Oct 25.00 Put @ 1.34 -