Tuesday, July 28, 2009

Back into XLK -- two weeks late...

As usual my crystal ball is broken, so after my XLK was assigned two weeks ago I waited while it gained 5% before I jumped back in. Did a buy-write XLK at 19.56, sold the Aug 19 call XLKHS at .82 for a net debit of 18.74. I tried debit orders at 18.69 (.31 premium) and 18.72 (.28 premium) before this order went (.26 premium) --and it went immediately. While .26 isn't much, it is still 1.3% for a maximum 26 day investment-best case of course. Break even is at a 4.3% drop, so there is a fair amount of downside insurance in this position.

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