Feb 2010 options expiration

The puts I wrote on PCL expired without being exercised.

The puts I bought on ANF expired OTM, for a 100% cash loss; ouch. I still own May $34 puts on ANF.

Wrote TUP puts

I wrote July $40 puts on TUP for $2.00 per share. With approximately 5 months to expiration, my potential return is:

(premium)/(strike price) = $2.00/$40.00 = 5.0 %

This is the return I get on the cash ($40 per share, or $4,000 per contract) I've set aside to secure the puts. I never write puts on margin.

This comes out to about a 1% return per month, which is the minimum return I require for taking a risk of this nature.

AAPL iPad profit margins

http://www.theregister.co.uk/2010/02/11/ipad_breakdown/

This from The Register; a breakdown of the profit-after-materials-cost for the iPad by a market research firm. Of course, this doesn't include R&D, advertising, and so forth.

"The research firm said the total cost of materials and manufacture for Apple's big iPhone ranged from $229.35 for the 3G-less, 16GB version, which sells for $499 to $346.5 for the top of the range 3G 64GB version, which carries a $829 price tag.

While the top end product produces a profit of $482.85, it is the 32GB 3G version which iSuppli says will produce the biggest chunk of profit. That's because while it sells at $729, its manufacturing cost is a mere $287.15, less than 50 bucks more than the bottom end iPad, producing a bumper profit of $441.85."

Bought GILD calls

Bought Jan2012 $45 calls on GILD for $8.50/share. If exercised, GILD will be 3% of my portfolio. I may turn this into a synthetic long by writing puts later.

GSK puts exercised early

The February puts I wrote on GSK were exercised early; I now own GSK at $42.50. The stock is currently trading for $37 and change.

Wrote puts on PCL

Wrote Feb $35 puts on PCL for $0.60 each. This is a shorter option period than I normally use, but I would be happy to own this stock, and the option return was good; 1.7% in 12 days, or about 4.3% per month, or about 51.4% annualized.

PCL sell order triggered.

A sell order on my PCL stock was triggered. I sold at $36.01, for a 20% gain.