Update/New Trade

I'm not very good at this regular updating thing apparently. And since these aren't the only trades I make, it is tough sometimes to keep track of the model portfolio as well. I will try to get that up-to-date this week and hopefully there should be more regular updates.

A couple updates to make. In my last post I was looking at different ways to handle my LZ naked puts. I ended up buying those back for a nickel instead of rolling them out, so that trade is closed out.

I also entered into a couple new merger arbitrage trades. The first was Motorola Mobility Holdings(MMI) which is being bought by Google for $40.00/share. The other one was NetLogic Microsystems(NETL) being bought by Broadcom for $50.00/share. The recent volatility has widened the spread on both of these, but I will list the prices I got for them.

• Sell to Open: 2 MMI Apr 21 2012 39.0 Puts @ $1.60
• Sell to Open: 1 NETL Apr 21 2012 49.0 Puts @ $1.50

I realize that's a bit of revisionist posting, but since I could likely get even more for both of those today, I'm not going to worry about it too much. I will use the current market value for the short option and margin values.

The Numbers

• Cash: +$470
• Short Option: -$1100
• Margin: -$3600