I set up a strangle 31/34. This is when you gamble the stock movement will have enough amplitude in one direction or the other and the gain in said direction is enough to overcome the loss in the other. With BMY this month my 34 calls tripled because I got them early enough before the run. Then I could write off my 31 puts. But we had a broad and sustained market pullback and I was able to recover 80% of my in-put. I almost lost it because out of sight, out of mind then one morning a little bird tapped me on the shoulder and said,"Hey you got some cost recovery on those BMY puts."
Not so lucky on all my oilpatch calls though. They will all expire tomorrow unless Iran declares war this afternoon.
Thank you all for the congrats. Couldn't have done it without you guys. Gonna take a little break - it's been a long month.
But I'm thinking MWE is next. Some bad eruo-news is bound to come out by next week. If MWE drifts down towards $1 - I'm buying.
Ding Ding! Ching Ching! rang the register!
7,012 April $33's at .90! Paid ave .42 :-$
BMY hit $33.93 today but not $34 - just couldn't wait any longer.
I let her as long as I could and picked up a nice chunk of extra dough had I sold last week, just too much money on the table.
Thanks to all for your encouragement and congrats to all other winners!
(Salty, on my way to redeem that boat! lol!)
Congrats Roy! I was about and call you and remind you today is the last day. I see the MM dividend game has started at BMY and they seem to like the April 33s best (200K contracts traded in the past hour).
Me too, I cashed in. Not enough for a boat -- but maybe a used Toyota... Thanks for the ride.
Speaking of oil Roy -
The pawn broker that is currently holding the title to your yacht
said that he has an offer from a Saudi Prince vacationing in Monoco to buy it :-)
Hey Roy -
Maybe just a coincidence, but the "Bernak" just recently completed a stress test of our banks and now the Euro Zone is raising the ceiling on their Crisis Firewall.
Ummmmmmmm.........are both sides of the pond making sure they're ready for something???
C'mon $35 !!
My april strangle passed BE last week. From here it is gravy.
31puts @.11 will expire worthless, but the 34calls @.09 now at.27 can run another day. [Wait. Let me look at this I might have to sell today.] And the puts might actually gain after Xdiv.
You can see I am new to options trading. Fun though.
What is happening with MLP's?