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Assured Guaranty Ltd. Message Board

  • rjjones11 rjjones11 Sep 14, 2011 12:15 PM Flag

    YIPPEE! A Free Ride.

    My AGO PUTS, for January 2012, went up.
    -
    I had options to sell 2000 shares at $12.50.
    -
    I sold 700 of them,
    the profit was enough to give me a free ride on the remaining 1300 PUTS.
    -
    RJ

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    • re: "YIPPEE! Wow! Talk about SELF-absorbed ! Not gonna make you popular this morning.

    • bet I done gooder than you on my put trades last month
      ______________________________________________

      Wed, Aug 3, premiums on DNDN puts before earnings:

      Aug 30 puts: 0.34

      Aug 25 puts: 0.13

      stock close: $35.84

      _________________________

      earnings announced a/h
      _________________________

      My put position executed on Wed, Aug 3:

      Buy 100 Aug 30 puts (100 x .34 x 100 = $3,400)

      Buy 200 Aug 25 puts (200 x .13 x 100 = $2,600)

      Total cost = $6,000

      ___________

      Aug 4 - shares trade $11.35 to $13
      _______________________________

      Thursday, Aug 4:

      Sell 100 Aug 30 puts @ $18 (100 x $18 x 100 =
      $180,000)

      Sell 200 Aug 25 puts @ $13 (200 x $13 x 100 = $260,000)

      ___________________________________________

      At risk: $6,000

      Net profit: $434,000

      • 1 Reply to xcalbear
      • I had 20 contracts [2000 shares] for January 21, 2012 $12.50 AGO Put options.
        I purchased these in May for $1.06.
        These are now in the money.
        In September, I sold off 7 of these contracts, giving me a free ride.
        This left me with 13 contracts.
        -
        Today I rolled those contracts forward to April 21, 2012.
        This gives me another three months to relish the situation.
        -
        I rolled forward into the $10 put options, I was in the $12.50 put options.
        Surprisingly, I made money doing this.
        I sold the January 2012, $12.50 put options for $3.10.
        I purchased the April 2012 $10 put options for $1.90.
        These new options are still in the money.
        -
        So this is a profit of $1.20 per share, or $1560 for the whole 1300 shares.
        -
        What will the future bring?
        -
        RJ

    • ....in a police car you fool

      • 1 Reply to addressbookme
      • “an option which conveys the right to sell is called a put.” ~ Wickipedia.
        Ok.
        -
        Here is what it says on my Brokerage Statement.
        Put AGO 01/21/12 12.50 Assured Guaranty Ltd
        Ok.
        -
        On May 24, I purchased 20 put contracts.
        [Each contract is for 100 shares therefore we have puts for 2000 shares]
        -
        I paid $1.06 + $70 in commissions.
        So that is $1.06 x 2000 options = $2120
        So with commissions that is $2190.
        -
        At yesterdays price of $3.15, this set of options should be worth $6,300.
        $3.15 X 2000 = $6,300.
        -
        $6300 (Current Value Wednesday) - $2190 (Total Price Paid) = $4110 Profit (a 187.6% Gain)
        -
        Yesterday, I sold 700 of these options at $3.15.
        700 X $3.15 = $2205
        I paid $2190 for the total package,
        So now if the options expire worthless, I am still ahead $15.
        -
        From this point on, any increase in the value of the options is pure profit.
        -
        At this point in time the 1300 options are worth (1300 X $3.15) $4095.
        -
        On May 24 AGO closed at $16.16.
        -
        The current AGO price is $11.32.
        -
        Actually, only today did I realize that they were in the money.
        -
        My current wet dream is to purchase 1300 shares of AGO for $2.70.
        Then exercise my options to sell them at $12.50.
        -
        That would be a $9.80 profit per share.
        -
        $9.80 x 1300 shares = $12,740 Profit.
        Yippee!
        -
        RJ

    • a likely story, u lost big time, recheck yr math.

 
AGO
26.16+0.27(+1.04%)May 4 4:04 PMEDT