NaughtyPines

OPENING: CHK COVERED CALL

NYSE:CHK   CHESAPEAKE ENERGY CORP
Continuing to work this high IV underlying here ... .

Metrics:

Bought 100 Shares at 7.76
Sold Oct             21st 8 call
Whole Package: 7.14 debit
Max Profit: $86 per 100 shares/contract
ROC: 12.0%
Comment: This little puppy's getting crushed. Covering the Oct 21st 8 call for a .05 ($5) debit (that's about as worthless as it gets) and opening the Nov 7 call for a .38 ($38) credit, further reducing my cost basis in the stock.
Comment: Covering the Nov 18th 7th call for .05 ($5)/contract (near worthless). Selling the Jan 20th 7 call for a .27 ($27)/contract credit (above my cost basis, which is now at 6.62/share). I'll look to sell short puts here after earnings to reduce cost basis and/or get my share price average down (since I clearly bought too high).
Comment: Selling the Jan 20th 4.5 puts on this dip for a .31 ($31)/contract credit, further reducing my cost basis in my shares, which should now be about 6.30/share.
Comment: Covered the 4.5 short put here for a .07 db at NY open. I was concerned that oil could possibly implode, depending on the outcome of the OPEC talks and didn't want to leave this hanging out there. I still have the Jan 20th 7 short call on, which is slightly in the money.
Trade closed manually: Covering the whole enchilada here for a 6.82 db. A small winner (about $33/contract), when all was said and done even though the price of the stock ended up going "nowhere."
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