Day: October 25, 2007

Yes, the market ha been topsy-turvy (isn’t it always?), but some of the 6/3 options from a couple of weeks back have done well. When they hit about 400% return, these options begin to move like the underlying stock, so it’s time to sell the option and but something further out of the market. One of them did that, so I made the following changes today –

6/3 Options:

Ticker	Bought	Sold	Months	Return
AXVDJ	$27.30	$97.90	.75	+358%	ISRG Apr 2008 250 Calls. Sold early, replaced by CUBDJ.
CUBDJ	$4.90	$N/A	0	N/A%	CUB 50’s Apr 2008 Calls. Sell in early January.

Normally, I would have replaced ISRG calls with new ISRG calls, but gadzooks the 350 April 2008 calls are expensive, more than I want to spend on an option, so I elected to replace it with the cheaper CUB calls.

What’s the overall performance here mid-month? Nothing to complain about –

• Last 4 weeks: 3.0%
• Last 3 months: 5.7%
• Last 12 months: +8.3%
• Year to date: +8.2% (Dow is +9.6% ytd from 12,463)