freeus - you don't have to hit the low to do well on a day like today...
After yesterday, I was primed and ready to go and had lined up the option plays - still, I didn't hit within a point of the low on any buys, or a point of the high on any sales, and we are talking MINUTES between pulling the trigger and getting results.
Started out with JDSU XXZDR Apr 90s at 6 1/2, JDSU XJUAT Jan 01 LEAPs at 25 - way off on that, could have had the LEAPs at 18. A little better on QCOM YQOAH Jan 01 140 LEAPs at 32 1/2, CSCO WIVAN Jan 02 70 LEAPs for 22 1/4. Took the plunge on MSFT ZMFAR Jan 01 90 LEAPs for 13 1/2, more ZKPAD SUNW Jan 01 80 LEAPs at 18 1/2, WJXAR SUNW Jan 02 LEAPs at 21 1/2.
I offset some of that cost by selling INTC INQPE apr 125 puts at 9 3/4, and CSCO CWYPN Apr 70 puts for 7 1/4. Burned up half of my available margin and over half of my cash in about 30 minutes just after lunch.
You'll do fine, you're probably money ahead already. I would watch the put sales a lot more carefully though - you didn't say which puts, I hope you sold near term. BTW, there is no relationship in selling puts like there is with covered calls - you can use margin on your DELL to sell INTC puts, for example. I watched DELL closely but the call premiums did not drop as much and the put premiums did not go up as much as I would have expected - seemed like there was a lot of confidence that the stock would not stay down. |
