Wednesday, December 26, 2007
I am still underwater on the Wet Seal (WTSLA) position. I sold March 2.50 calls at 0.30 covering 40% of the position today to ease the pain a little bit. At the time of the sale, shares were trading at 2.48. I figure this gives me a little bit of cushion without substantially crippling any upside the shares might provide. Effective cost basis on the entire position now sits at 2.86 with 60% of the shares really working for me.