SGTL announced today that it would be acquired for $3 per share.  The acquisition is expected to complete sometime in 2Q08.  This would be fine except that I own 1800 shares at at average share price of something over $7.  I am going to take a bath on this stock.  The only saving grace is that it is in my taxable account so I will be able to off set some other profits and up to $3000 of other earned income.  It is still a considerable loss though.

I have some calls outstanding at $5 per share that will not expire until after the acquisition.  I am not sure how that works.  I’ll need to call my broker when I get a chance and see what they know.

Oh well, it will be cash into the account that I can do something more profitable with.

I sold 18 SGTL Jan10 5 Calls for $338.50 in my taxable account.  My average basis in this stock is now $7.94.   That is not a mistype.  I sold Calls for Jan 2010.

I first sold puts on SGTL in Jul 2005.  My records are a little sketchy but it looks like I had some success where the puts expired worthless and other cases where I rolled them out.  Then I see that I began to be assigned them a few at a time.  I don’t have a clue right now why I ever got involved with SGTL or why I continued to sell puts, even at decreasing strike prices.  It appears that these may be the last options that I sell on SGTL because the only options currently available are for Mar08, Jan09 and Jan10.