Tuesday, August 26, 2008

Option modifications for a new price level

I modified some call positions in Titanium Metals (calls 5.4% of portfolio), which had the net effect of making the position more conservative. I bascially exchanged calls with a 15 strike for those with a 10 strike, and reduced the dollar exposure by about 30%. So the call position I retain is both smaller and less aggressive. I felt it was prudent to do this in light of today's rise in the stock. I also added a small amount to my call position in Nabors (calls 10.8% of portfolio), which had been beaten down badly in recent months, but which is now showing some signs of recovery.