AKS : Trade Adjustment for mid August 2012

Below is a snapshot of the AKS current position on Aug 13th 2012 at 4pm. Close price is $5.62.

2 trades were executed on 13th July 2012 :
Buy to Close position : Short 3 AKS July 2012 Puts strike $6 : price $0.48 – costing $153.30 to buy back, losing $33 (loss)

Sell to Open position : Short 3 AKS Aug 2012 Puts strike $6 : price $0.72 – bringing in $216 cash.

REALISED GAIN/LOSS *
Closed position : Long 17 AKS Sept 2012 Puts strike $9 : bought $1.79, sold $2.46 = $1136 (gain)
Close position : Long 17 AKS Sept 2012 Puts strike $8 : bought $1.72, sold at $2.09 = $629 (gain)
Close position : Long 20 AKS July 2012 Puts strike $6 : bought $0.44, sold at $0.45 = $17 (gain)
Closed position : Short 3 AKS June 2012 Puts strike $6 : sold $0.36, bought $0.14 = $66 (gain)
Closed position : Short 3 AKS July 2012 Puts strike $6 : sold $0.36, bought $0.48 = $33 (loss)

Total : $1815 (gain)

UNREALISED GAIN/LOSS*
Open position : Long AKS 2000 shares : price is 5.62 = -$4182 (loss on 1700 shares) + -$180 loss on 300 shares) = -$4362
Open position : Long 20 AKS Dec 2012 Puts strike $6 : price is $1.01 = -$140 (loss)
Open position : Short 3 AKS July 2012 Puts strike $6 : price is $0.45 = $81 (gain)
Total : -$4441 (loss)
(* including commissions and assuming worst case option prices)

Total gain / loss : -$2626 or 15.6% (not good)

Stock (buy and hold) is down 2.9% since last checkpoint on July 02rd 2012.
Strategy is down 3.6% due to option decay (worse than buy and hold).

The stock has been up and down in a range of peaking at 6.14 on July 5th, having a massive sellover to 4.66 on July 26th 2012, then make up to an intermediate peak on 5.94 on Aug 10th. However it has finished the period with no clear direction for the last 2 months. This is frustrating for the married put strategy as no rolling of options was done to lock in gains, and the Dec 2012 put has lost value with all the stock moving around.

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