Sometimes it is better to be lucky than right….Going into Wednesday of this week, I was telling myself that I should have never entered into the second covered call a month ago when Lehman (ticker: LEH) was at trading at $24.20. During that posting, I still had the opportunity of a gain…
But miraculously, in the last [...]

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As the termination news on the Penn National Gaming (PENN) merger hits the wire on July 3rd, I realized that I need to bring closure on one of my trading ideas. In my previous PENN merger arbitrage post, I entered into a ”paper-trade” hoping to capture +20% return on 419 shares. Since then, the credit crunch hit this trade in full [...]

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So that was an interest two weeks for the Lehman stock as my covered call wasn’t executed….As you may recall, I entered into a covered call paper trade for 2,000 shares of Lehman (LEH). When I entered this trade, the stock was trading at $32.29 and I sold call options at $25 for a margin [...]

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