Finally today I close the Google trade which was initiated on February 12, 2010 (click here for the post). I had sold June 2010 PUTS on GOOG for the strike price of $450 for a premium of $9/share or equivalently $900/contract.
Since then Google shares have traded up and the puts have lost value. So today I feel is best for buying them back as Google will report earnings after market closes today. Even with a disappointing report today, I don't think that the shares will tumble to $450, but by closing today I will take out some volatility out of my account and free up margin to take on other positions.
Today the puts which were sold for $9/share were bought back at $0.85/share - more than an $8 gain for a 2 month holding period.
No comments:
Post a Comment