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Losing My Options Virginity on CNBC Options Action

Tickers in this article: SLW
NEW YORK ( TheStreet) --  About nine months ago, I was an options virgin. I had never touched an option before nor did I want to. Trading options takes a vast amount of knowledge, and while I understood options basics at the time, I knew I needed just a little more guidance in order to make my first options trade. At the time, I was happy to be doing my thing, simply trading stocks. I wasn't really out searching for that guidance. I knew it would come at the right moment.

On May 15, 2013, I got a call from Maxwell Meyers, executive producer of CNBC, asking if I would appear on their options program, "Options Action," to place my very first options trade with help from CNBC pro's like Dan Nathan, Michael Khouw, Scott Nations and Mandy Drury. I was SO excited and couldn't think of a better way to place my first options trade.

At the time of my "Options Action" appearance, I had a basic understanding of options, such as calls, puts, strike prices, expirations, writers, buyers, and other such terms. I understood covered calls and rolling options. For those of you who don't have a basic understanding of options, you can catch up here at this link after you finish this blog.

In preparation for my appearance on the show, the producers asked me to talk about a stock that I either had a long position in currently, or one that I would be buying into long, on that day.

At that time, I was in a net-long position in Silver Wheaton holding 500 shares at an average price of $23.70. I went to the "Options Action" experts on May 17, 2013, and brought them my stock choice that was down roughly almost $2 from my purchase price.

Although I identify myself as mainly a daytrader who would not ever hold a stock as long as a month as with this SLW purchase, I was comfortable holding onto SLW because of the company's strong fundamentals.

Below is an assessment (I had lots of help from number-crunchers to assemble these numbers) of the recommendations from both the CNBC experts and others who wrote to me after I appeared on the show.

Which play did I choose? 

If I had followed Ajay's advice, I would have had the largest gain for the simplest play. Instead, I made a number of different trades, ending up gaining second best to Ajay. My play was complex because I wrestled through many things, including doubt, a regaining of confidence in my stock choice, a gain in confidence in working with covered calls, and a few other things. 

Here are my SLW stock and options trades.