Are you playing any of the earnings reports this week? Just curious if you are employing any straddle/strangle trades which seem pretty effective around earnings even though premiums are higher. It's always very educational/informative when you make your trades public. I realize you may be to busy with other things ;)
Nice trade. I had a few options close out today. One was a complete home run or bust type of speculation trade that busted (Rad $5 C's). At least it was a very small amount (since it was a real spec pay). The other trade that expired today (tomorrow actually) was a $25x27.50 Yahoo call spread. I still have the exact same spread on for Jan and if the stock goes out above the $27.50 strike I'll have made 100% on the combined trades because my basis was $1.25 and I make a $1.25 profit.
The 6 ATVI $27.50 puts I wrote last yr expire next month. I'm holding them till expiration as well and will either keep the $7 I sold them for or get assigned and buy the stock for $27.50 (giving me a $20.50 basis in those shares). Either way I'll be happy. I either keep the entire $4,200 I collected when I wrote them or I add more shares to my current position and look to write calls against some of it in the high $20's/low$30's over the next few months.
I'm a little upset that I've been distracted by other things and missed a few trades that I would have otherwise done for a nice profit but that's life. I've been a little more active on the political scene this yr and am helping some friends with their budgets/finances so I'm not "on top of" the mkt as much lately. I'll be looking around for more trades later.
GITA(Good Investing To All)!!!
I must be jinxed. I gave your thoughts some weight and decided to go for some insurance and buy a few May 55 puts. The stock was 58.16 when I placed the order at 1.60 (and missed by a nickle), the stock almost immediately dropped to 57.57 and the puts are already 1.75/1.80.
Possibly, but I doubt it. That's 10% in two weeks. But I definitely would bet on low to mid 60s by the end of May. When those rebate checks start coming in, the stores will get more crowded than they are now, and reports of booming sales will drive the price higher. I'd love to be proven wrong and see 60 by end of April and 70 by end of May.