With AA over $14.40 it was time to cover the $12.50 Jan puts. At $.08 over 80% of the premium has been received and it did not seem prudent to leave the capital to cover the puts at risk for such a small remaining reward.
The options were sold at $.51 and covered at $.08. After commissions, the result was over a 3% gain for a position held less than 4 weeks. That is nearly a 40% annualized return.
A 1/2 position covered by Jan $15 calls remain in place. Earning announcement scheduled for Jan 10. I remain bullish on the stock. The earning event will likely create some volatility which might create an opportunity to put back on the short put trade early in 2011.