Disclaimer: I am not an investment advisor. When I describe my own trading activities, it is not intended as advice or solicitation of any kind.

22 November 2010

Collar Trade for the Month

This weekend was expiry for November 2010 options, and the collar trade was short Nov 53-calls.  Since QQQQ closed on Friday at 52.47, those calls expired worthless.  I sold new Dec 54-calls this afternoon for 38c/share.  With QQQQ trading at 52.70 when I placed the trade, this just barely violated my "at least 2.5% out of the money" rule.  But the next strike up (55) would have been 4.4% out of the money and barely worth the commissions, so I felt it was close enough.

Not really anything else to say there... it's a pretty mechanical trade, and there was nothing all that complicated to consider this month.

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