Hedging Your Bet With American Capital Strategies - davybui

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Hedging Your Bet With American Capital Strategies
May 15, 2008 01:17 PM UTC

davybui

Return	Risk
-55.17%	MID

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Profile & Performance

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Symbol	Sentiment	Start	Return	Closed
ACAS		05/15/08	-35.31%	08/27/08

Via Long Investment Ideas from Seeking Alpha:

On 01/02/2008, I sold puts on American Capital Strategies (ACAS) at
a strike price of $35 for May 2008 expiration, collecting a premium of
$5.50 per contract (all detailed on my portfolio spreadsheet).
Those contracts are trading at $4.00 at last check and I can close them
out for a gain of 4% (12% annualized) on value at risk.

However, after reviewing Q1 2008 results, I am comfortable with
adding ACAS to our portfolio at an effective price of $29.56 per share.

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