Market Continues Downward Movement
Current Position Performance:
| Total Invested: | $1,336 | ||||||
| Total Return: | $1,628 | ||||||
| Unrealized Profit: | $292 | ||||||
| Unrealized Profit %: | 21.82% | ||||||
| Total Positions: | 6 | ||||||
| Average Days Held: | |||||||
| Date | Qty | Company | Contract | Strike | Expiration | Price | Cost Basis |
| 6/18/2008 | 5 | PIR | Put | 5 | July 08 | $0.15 | $75 |
| 6/20/2008 | 5 | PIR | Put | 5 | July 08 | $0.52 | $260 |
| Days | 2 | Profit % | 246.67% | Profit | $185 | ||
| 6/18/2008 | 2 | PRGS | Call | 30 | July 08 | $0.70 | $140 |
| Open | 2 | PRGS | Call | 30 | July 08 | $0.10 | $20 |
| Days | Profit % | -85.71% | Profit | ($120) | |||
| 6/18/2008 | 5 | SJM | Call | 45 | July 08 | $0.28 | $140 |
| 6/20/2008 | 5 | SJM | Call | 45 | July 08 | $1.27 | $635 |
| Days | 2 | Profit % | 353.57% | Profit | $495 | ||
| 6/18/2008 | 1 | ZMH | Call | 70 | Sep 08 | $4.50 | $450 |
| Open | 1 | ZMH | Call | 70 | Sep 08 | $3.10 | $310 |
| Days | Profit % | -31.11% | Profit | ($140) | |||
| 6/18/2008 | 1 | SSL | Call | 60 | July 08 | $2.30 | $230 |
| Open | 1 | SSL | Call | 60 | July 08 | $1.38 | $138 |
| Days | Profit % | -40.22% | Profit | ($93) | |||
| 4/10/2008 | 2 | CCRT | Put | 7.5 | July 08 | $1.51 | $301 |
| Open | 2 | CCRT | Put | 7.5 | July 08 | $1.33 | $265 |
| Days | Profit % | -11.96% | Profit | ($36) | |||
The Dow dropped ~360 points and the S&P has retreated below 1300. Oil Futures spiked above $140 a barrel. Is the current oil spike caused by a fundamental supply/demand issue or is it being affected by speculators? The Fed didn’t change the Interest rate, which means that it will be at 2% through Q3.
Current positions:
All the open positions, except for CCRT, are currently calls (ZMH, PRGS, SSL), thus being effected very negatively today. CCRT continues to go down and the position should be closed with profit by the end of the first week of July. ZMH, PRGS, and SSL calls will need to be sold by the first week of July as well, because they are uncovered and are way too volatile in this market.
Progress Software (PRGS) actually beat their earnings but they lowered their guidance, which in turn lowered their multiple. The call positions have lost practically all their value. This was a speculative play based off PRGS beating their earnings.
Ares Trading believes it would be prudent to write off these positions, with loss, and start fresh with hedged positions better acclimated to the current market environment. The positions are currently around 3 weeks from expiration.
