Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Author: Motts612 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 55  
Subject: Guess March Puts Date: 3/11/2012 12:00 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Hi Guys;

I started with MF Options a few months back and I'm just now coming up on my first actionable closings and I have a question regarding the GES Mar12 $38Puts.

I wrote puts per the recommendation and am up almost the entire amount. I sold them for $2.05 and as of Friday they were at $0.02.

Since the stock at $35.94 is worth less than the $38 strike put I'm assuming that I'm likely to be assigned?

My question is how should I play this?

The other trade question concerns BBY covered calls. I was thinking of rolling up and out to the Jun12 $26call at a net credit of $0.20. Any thoughts on this one?

Thanks for any advice.
Ed
Print the post Back To Top
Author: JoeandChuckP Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 49 of 55
Subject: Re: Guess March Puts Date: 3/14/2012 4:23 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
What did you decide to do?

Curious in light of the after hours earnings moving the stock lower...

CP

Print the post Back To Top
Author: King2fish One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 50 of 55
Subject: Re: Guess March Puts Date: 3/28/2012 12:06 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Ed,
By now you may have realized that MFO has its own boards.
However, you found out that "writing" puts at a strike higher than the stock price does not get assigned, but just expires, leaving you with the premium you were paid entirely profit. Congratulations!, and spend a few minutes reading the Options Handbook.
Steve

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Advertisement