Hope! I sold 4 OIHGV contracts for $4.63 to rake in about $1,840 today in my power account. This represents a 4% return over a 6 month window since OIHGV is July 09 $110 strike. Given the state of the economy and markets I figured an 8% return (annualized) is much better than nothing and certainly better than what any bank is paying in interest these days. If OIHGV expires worthless in July then I’ll sell Jan 2010 $110 calls and if my calls get assigned then I’m back in cash and hopefully that means that the market is on its way to recovery and I’ll have a ton of cash to play with…
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Looks like a good day to find something to play with for OIH! I knew you couldn’t just sit on the sidelines the whole time.
My calculations (which are done, I guess, slightly different than yours) get a little better yield on the whole overall trade. It looks like you bought in for $43k+ and have sold, bought, and sold option contracts for a net of just over $4k in premium since 10/08. Assuming you get called in July, that makes for a little better than 10% in about 8 months, plus the small dividend checks, no?
If so, it looks like an annualized return for the whole trade of right around 15%.
Shucks T-man, you caught me!
The Oil & Gas sector is deteriorating rapidly and I wanted to squeeze some cash before everyone realized it. I expect my options to expire worthless but you never know.
You’re right though, my returns don’t include dividends, last year’s profits or various adjustments and it is around 10% so far.
If OIH drops significantly, I might buy back those options cheap but anything can happen.
Israel/Gaza & Russia/Ukrane, and India/Pakistan can all send oil through the roof but that’s not the way I want oil to go up!
P.S. I’m looking at UYG options too. Just need to get UYG above $7 to make a trade.
Heck…now you busted me. I am still a little ummm…”upside down” on UYG!
I am hoping to pick up another 100 shares – maybe at around the $7 mark, also, and try to claw my way back into this one. I might even shoot at $6 – who knows?
The one thing that I can say is that while all of my co-workers are crying about the hits that they took to their retirement accounts, I seem to have outperformed them all (over all of my accounts – taxable and retirement) – as they claim losses of almost 40%. I am still doing all of my calculations, but even with the paper losses, MS Money still thinks I am under 30%. So…if those calculations are right, I seem to have out-performed the market – which, at the end of the day, sure does seem to be everyone’s goal.
[...] By RichSlick Well this is interesting….OIH is approaching $110 and I if you recall, back in January I sold 4 OIHGV (July $110 09) contracts. If OIH holds, I may end up getting called on OIH and [...]