GS
Been looking to go short post Alibaba (BABA) hype train, proved to work well. We opened up above the top BB on Friday so I bought 2 185/190 Dec14 puts for 2.35... now trading at 2.65 +$60
Want to ride this down to 20ma and then close it out
WFC
Same thing for WFC on Friday, opened above top BB on an upgrade from (ironically) Goldman Sachs (GS). Filled 4 at 1.30 for NOV14 52.5/55 puts, now @ 1.60 +$120
Also want to ride this to 20ma
Out 4 WFC 52.5/55 NOV14 puts @ 1.95 +$260 +50%... got close enough to the 20ma and I didn't want to get greedy
ReplyDeleteWFC closed at LoD with higher than average volume, probably will continue to sell off tomorrow, but I didn't want to get greedy, a 50% gain is good enough for me. Would not be surprised if this sold off to 50ma
Looking to get out of GS at the 20ma for a nice gain there too, although it remained resilient today when markets were down.
December contracts are farther out than Nov, which at the time were not open for trading. That means this spread will have less volatility i.e. require a larger move in the underlying to make $$$