Just as a recap, we entered AKS trade on Feb 27th 2012 at price 8.08.
Below is a snapshot of the current position on Mar 16th 2012 at 10.17am. The Date and time is choosen purely because the price is identical to Feb 27th 2012 close (8.08).
REALISED GAIN/LOSS *
Closed position : Long 17 AKS Sept 2012 Puts strike $8 : bought $1.79, sold $2.46 = $1136 (gain)
(* including commissions)
Open position : Long AKS 1700 shares : price is 8.08 = $0 (breakeven)
Open position : Long 17 AKS Sept 2012 Puts strike $8 : price is $1.10 = -$1054 (loss)
Open position : Short 3 AKS June 2012 Puts strike $6 : price is $0.17 = $57 (gain)
(* including commissions and assuming worst case option prices)
Total gain / loss : $142
The small gain is purely from the option hedges, as the stock was unchanged.
The stock has had a dip down beneath 7, then back up over 8 in this time period.
The gain shows that you can actually make some money hedging, even if the stock doesnt move much.
The risk of holding in the dip is reduced also because the put enforces the downside protection.