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Tuesday, January 19, 2010

Fourth trade finished

The account just finished with the fourth trade with positive results. The stock ended up closing on Friday below the strike price. Therefor, the option that was sold expired worthless. The option revenue was 6.7% of the stock purchase price.

The stock was also up 6.7% from where it was originally purchased. It is strange that both numbers ended up being the same amount percentage wise.

The fact that the stock is closer to the strike price has helped the time value increase in the next trade.

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