...everyone? I may be a day late, but I think there's more to come. Feb. 65's look tempting at .60. They'll probably be more like .75 at the open tomorrow. Earnings will complicate things.
No offense guys, but this is technically the WORST place to buy puts, the bottom is forming around 71 which makes perfect sense when looking at the charts, be careful, this is the place of very strong support that is pushing many to buy calls (including myself...except I'm playing the common stock)...not saying it can't go lower, just saying proceed with extreme caution...don't forget this stock used to be 91-92 bucks i mid January, it's had a HUGE move to the downside...
I do think it will go to mid or low 60.
but even if it go all the way down to 60 wouldn't you make more money by holding $70/$75 put compare to $65 put?
It make sense to but out of money put when they are cheap when volatility is low..but with the stock already down more than 10% you, all you paid for is extrinsic which decay with time.
I bought March 55 puts yesterday @ .25. Toyota corporate culture is to sweep everything under the rug. Remember engine sludging fiasco? I also suspect acceleration problem is electrical.