After reading a short article about the company Nuance Communications, I decided to sell a straddle against the particular position on May 11, 2011. I sold a straddle on the position at approximately $21 for the may call and put. The profit on the position was $95. I purchased the stock at $21.65 a share. As the end of the month rolled around, the options ended up potentially expiring except for the fact that on the Friday of expiration, my option was assigned on the covered call against my shares at which I sold my Nuance Communications position at $21 a share. By the time commissions were taken out (five dollars for the initial stock, $5.90 for the initial straddle position and $15 for the assignment on the covered call position) I was able to net an increase of $4.04. While not seemingly significant, they gave him position was a huge milestone for me in the fact that I was able to make a profit on a position in such a short period of time. In fact, I would like to try and repeat this endeavor again and will see how to proceed forward as it does not appear to be too difficult to implement this trade. All in all, always nice to make a small profit.
In the future, I am going to begin towing around with using a mind mapping software called free mind. The point of this particular endeavor will be to determine if I can visually represent the information and make it more complete. Either way it will be a fun experiment.
Happy endeavors on your training!
The verbiage above was dictated using Dragon NaturallySpeaking 10.1 professional
