I purchased 10 contracts just before the close yesterday. I thought they were more in the money but had managed to confuse myself while looking at my choices. Anyway.... I purchased 5 September 375 calls and 5 September 380 calls.
Both are obviously in the money but the premiums were inflated yesterday. Should I sell them early this amm and avoid a premium crush or should I just hang on hoping for higher prices before they expire in September?
This reminds me of a situation about two years ago when Google was about to announce their earnings. I bought 10 almost in the money put options and waited for the close. Sure enough, Google announced disappointing earnings and stock dropped 30+ points in aftermarket trading. I was ecstatic. In a perfect world, I would have picked up a solid 20,000+ in profits the next day. As in your case, however, the premium blew out like a beach ball the next day and I made a measly 3,600. I couldn't believe it. If I were you, I'd wait for another price increase...your options have some time left. BTW, good call!!
U r asking about options and yet u have the audacity to imply that our Pres. a "turd" as in your moniker?.
U have shown your true IGNORANCE & JEALOUSY for all to see.
I'm pretty sure u don't have even a high school certificate!
If it were me I would sell one and let the other ride, kind of like playing with house money.
And besides it nice to say you made something like $6k in a day.
Or you could sell them to me, I will give you a 10% premium over what you paid;-)
relax . . . on the first set you were practically at the money at 375 and not too far off at 380 with some time on your side since they are Sept ex.
watch the open . . . you will be up . . . it is a matter of how much based on price action . . . some premium will be gone b/c ER is now done, but you are still ITM on both now so you are fine . . .
just don't get greedy . . . roll them out to Oct or further if you want to keep the money on the table . . .
Whatever you do DO NOT SELL RIGHT AT the OPEN. I'm convinced that there are people that are jealous at others fortunes.
If you've been in options for any length of time you should already know that right at the start of the bell the Bid/Ask Spread is crazy on both sides of the spectrum. Hold out for around 10-15 Minutes for them to get closer and then pull the trigger.
A good test study would be to look at how GOOG traded after earnings. Up then profit taking then back up. So you can possibly get 2 good trades out of it.
Congratulations and look into finding good people on Twitter and/or Stocktwits to follow that are alot more altruistic and professional trading.
The Yahoo Finance Message Boards should be used solely as a laugh and the joke that it is.