Holdings > Holding Rationales > Portfolio Update

Holding: ADBE

StockMarketBeat [254]

Symbol

Sector

Return

Exposure

Trades

Last Trade

Status

ADBE

Software

-46.73%

1

16-Nov-07

Currently Holding

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21-May-08

Portfolio Update

Holding Rationale for ADBE.

0

With option expirations last Friday, many of the options I had written have expired. Generally speaking that was a good thing for me, as it meant I was able to keep the option premium. It also meant that I had to reload many of the positions, which I did yesterday.

There were a couple of situations in which I would have done better by simply buying or selling the stock outright rather than selling the options. In other cases, I would have fared worse. Over the long term, I think the option writing strategy will be more rewarding and less risky than a stock-only strategy.

The new option positions I have written (all expiring in June) are:

Coach (COH) $35 puts
Hansen Natural (HANS) $30 calls
Radioshack (RSH) $15 puts
Ansys (ANSS) $45 call options
Starbucks (SBUX) $17 call options
Adobe (ADBE) $45 call options
Ceradyne (CRDN) $40 put options
Nutrisystem (NTRI) $20 put options

I also sold outright a position in Itron (ITRI), which was too few shares to cover with a call option.

Disclosure: Obviously, at the time of publication William Trent has a financial position in all of the companies mentioned in this article with the exception of Itron.

Disclosure: Author is long Starbucks (SBUX) at time of publication.