Friday, April 27, 2012

It's so hard to say good-bye...

Today I sold my position in AIG TARP warrants for proceeds of $37,944 (3,000 warrants at $12.65).  Thanks to the Herculean efforts of CEO Benmosche and Chairman Miller, this investment has turned out extremely well for me.  And because of my confidence in these executives, and the solid franchise of AIG's core operating businesses, it's with a heavy heart that I decided to sell.  Nonetheless, anytime a stock is bumping up against its 52-week high I start to get nervous.  Besides, with the overall market close to it's 52-week high, I thought now may be a good time to raise some cash for the next rainy day.

For those of you keeping track, I first purchased 2,000 warrants in August 2011 at $6.94, for an initial outlay of $13,885.  In November 2011, I added 1,000 more at $5.37 for $5,375.  All-in-all, my total cost basis was $19,260, which means I made a profit of $18,684 on this position... not too shabby!

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Wednesday, April 18, 2012

Quick Update

This post is just a quick update on a transaction I made today.

As you'll recall, I trimmed my Sears position (by selling Jan 2013 $95 calls) earlier this year.  However, the last month or so has not been kind to the stock (it's fallen from the mid-80's to the high 50's), and I figured I'd use this pullback as an opportunity to add to my position.  Specifically, I purchased 10 Jan 2014 $85 LEAPS at $4.35 per contract, for a total outlay of $4,362.

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