I have BIDU, CRM, FFIV, PCLN, LVS, OPEN, SLW and MCP in my holdings. I already discussed about OPEN, SLW and a portion of my FFIV holdings. Here is how my other positions are doing. BIDU, CRM and PCLN and FFIV comprise the bulk part of my holdings (82%).
- BIDU: covered call. strike 105. Even after the recent drop, my BIDU positions are still deep in the money. I believe before BIDU sees 105, the markets will rebound. The time value of my BIDU option has already decayed by $10 (i.e., I already made $10/sh), it still has ~$20 in time value for its Sept 105 call (i.e., if BIDU stays above $105/sh by the 3rd Sat in Sept, I’ll make another $20/sh, that’s about 63.5% return).
- PCLN: covered call, strike 450. My PCLN positions are still in the money, although at 462, it’s only 12 points above my strike. I wouldn’t worry about this for now. I already made $42/sh of time value on PCLN (since Apr. 15, 2011), there is still $35.35/sh time value to be made until its expiration on Oct. 22, 2011 (or 26.3% return).
- CRM: covered call, strike at 130 (est. May 20, 2011). I already made $7.4/sh on time value since May 20. There is still $15.75/sh time value to be made until Aug. 2011 (or 40% return). Even after the recent market fall, I am still sitting very comfortably with this position.
- FFIV: covered call, with slightly more negative position. My call options strikes are 97.5 and 100. These options have 28 days to expire and the residual time value is ~18%.
- Summary, even with the recent significant market pullback, 82% of my portfolio positions are still in good conditions. This shows again the power of covered call.
