Thursday, October 26, 2006

Quick Portfolio Update

I said I would be adding to the Form Factor (FORM) position at $37.50 yesterday evening. I lied. I increased my existing position by 50% with a purchase just minutes ago at $38.48. This is actually averaging up, and not down. The cost basis of the position now sits at $37.36. I'm going to try and sell some calls on the entire position as a way to trade potential upside past $40 for a reduction in effective cost basis.

** Edit #1 **

Just noticed that FORM has bounced a bit, and my order to sell the calls was filled... sold the FORM $40 Nov Calls (AFUKH) at $1.40. This brings down the cost basis to 35.96 with a cap on the upside at 40.

** Edit #2 **

Sold calls on the Broadcom (BRCM) position in the trading portfolio. Just got filled on an order to sell the Nov $30 calls at $0.95. Effective cost basis is now $27.25 on this position... Shares put to me at $30 less put premium collected $1.80 less covered call premium collected $0.95. Upside capped at $30.

** Edit #3 **

GAMBLING... sold a small position of Akamai (AKAM) short at $49.46. Following in the footsteps of Gaamblor. Even if it moves big either way, won't really amount to too much, but gambling is fun.

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