Thursday, November 29, 2007
Sell - 1 SHLD Dec 100 Put @ 6.00 (Bought @ 3.00)
Ignorance is bliss! I had no idea that SHLD was reporting today, otherwise I might not have even taken this trade. I was thinking of closing it yesterday, good thing I decided not to.
Closed this a little after the open. Some thing that I've realized trading big earnings based moves is to get rid of options at the beginning of the day, that's when the premiums are usually the highest.
As a side note, I bought this put option @ 3.00 when the stock was trading at around 111. Now it's at 104 and the option is still selling for only 3.00. Goes to show what an IV drop can do to an option price.
Closed this a little after the open. Some thing that I've realized trading big earnings based moves is to get rid of options at the beginning of the day, that's when the premiums are usually the highest.
As a side note, I bought this put option @ 3.00 when the stock was trading at around 111. Now it's at 104 and the option is still selling for only 3.00. Goes to show what an IV drop can do to an option price.
