I have June 775 puts and they that I got when Goog was well over 900 for 2.33 and even though the stock has come down 45.00 since then my contracts are now only worth 1.10. What the ? Would appreciate any help as I am some what new to Option trading. Thanks
I agree that you should hold on to your position. GOOG trend line showing around $750 by your June 22nd OE day. There was a lot of CALL buyers that were suckered in at $910 level and now they are chasing. If GOOG should take another $40-50 dive next week, then I would recommend selling 1/2 of your position, which will go for $6-$7 a shot.
If your new to options, it's not a good idea to start with a volatile stock like GOOG. First, you need to realize that out of money options lose time value faster than options in the money. This is especially true during the last 2 months of an options life. So unless GOOG goes under 775 soon you are s--------d. If you are still bearish, it's a good idea to roll up your puts to about $870. Better yet, sell off your position and learn to trade options before trading such a volatile stock. And if you have to ask what does volatility have to do with it? Then you are not ready to trade options at all.
Thanks So you are saying even if Goog drops another 60.00 by June exp, I will still not make anything? Today I sold mt HOG 55.ooaugust puts for a 80 percent profit, so I am making money on most of my trades. Maybe I should buy closer to the money than so far out but with goog the prem is too high for me.