Investor's Opinion
Portfolio Update: Premium Pocketed and Exercise in Patience
Published: 2010-05-24 20:29:00 EDT by Unknown
That is it for the pocketed premium portion, now for the patience exercise. Both my optionable position of Capital Product Partners, LP (CPLP) and the Call option I purchased is in the negative. To hold on to the Call option was irresponsible of me, but fortunately there are 4 months until expiration. I am going to take the opinion that it will level off and reverse before the 4 months is out. I am comfortable with my decision to hold onto the stock because the dividend payout is good for the earnings they make. I am not expecting large growth from this stock.
Unfortunately, the CPLP Call option wasn't the only irresponsible move I made. I also am still holding on to a Call option for the United States Natural Gas ETF (UNG). I am currently only down part of the commission cost. Fortunately, I have 5 months until expiration. I am going to continue to hold and be patient for this correction to return back up.
I am, however, going to make an adjustment to my expectations. I am going to recalculate my exits for smaller gains on these options. I am thinking somewhere around 25% plus the cost of round trip commissions. I shouldn't expect too strong of a rebound after this correction.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Labels: correction, dividend yield, opinion, option strategies, updateUpdated: 2010-05-24 21:12:20 EDT
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