Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: craigt111 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 482  
Subject: DDD Put Date: 1/28/2013 9:56 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I originally bought DDD at 39.000... happy where it's at now. Understand volatility, but as a newbie bought a Mar 16 /13 $65 Put (happy to own at a reasonable price, when subtracting premium) and picked up $409.

As of today (Monday) the stock has taken a nearly $7 dip (at this time $3.50 below the strike price).

Two questions:
1. Am I obligated to Sell to Close early, because it has gone below the strike price of $65, or can I wait it out to see what happens at expiration (in March)?

2. Would it behoove me to Sell to Close, early, in order to take advantage of a price better than what I had anticipated (minus the premium). I would be happy with either and am covered financially to handle it.

Thanks,

Craig O.
@Craigt1
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement