VSEA Update

A couple months ago I sold some puts as a merger arbitrage play. It's time to close out the Varian Semiconductor(VSEA) trade. I originally sold a November put for $1.55 back on August 1. The option was trading down to $0.15 today so I closed it out. The model portfolio has enough margin available that this isn't necessary, but it's a habit. There's just no point in tying up the margin requirements for another month to make an extra $15(0.15x100).

• Buy to Close: One(1) VSEA Nov 19 2011 60.0 Put @ $0.15

I am recording a gain of almost 11% in less than 3 months.

The Numbers

• Cash: -$15
• Short Option: +$20
• Margin: +$1000