My GDX went north of the strike price for the covered calls I wrote. I bought most of them back and will realize a long-term capital gain on the portion I did not repurchase. Cash proceeds will stay in cash. Yes, I'm waiting for the next leg down. It's just around the corner, sooner or later.
Now for the options updates.
I renewed covered calls and cash-covered short puts on GDX.
I renewed covered calls on FXI. No short puts this time, as China is overheating thanks to real estate flipping and insane leverage. I won't go long any more China / FXI for a while but I'll hang onto what I have and keep writing call options.
One new options position I opened was to write cash-covered puts under TDW at a strike price of 40. I still think Tidewater's intrinsic value is a lot higher than that so I wouldn't mind being forced to increase my stake. The covered calls I wrote on TDW last month will expire in Oct. 2010.
Now let's talk fixed income. I put a little bit of cash to work by going long Treasuries that mature in October. I also decided to give the State of California some confidence by going long California state munis maturing in Sept. 2011. I did this after months of considering the likelihood of repayment for state GO bonds, and I find that to be quite high. I believe the state government will starve every other program - including education - before it considers nonpayment of muni bond interest.
I keep looking at FLIR but I'm not ready to pull that trigger just yet.
That's it for this month.