Hi ag,
CLST's current price correction down to 18-20 has discounted much of the asia effect in it already, just like NOK.A fell to 65 and MOT down to 55 - most of the bad things already priced in.
Money center banks - I was fooled by market breadth health up till yesterday and thought CCI might try 133-135 before heading back down. the puts are too expensive, it would be an outright short. In fact, most puts are expensive, when you factor in the spread, time value, volatility prem, etc., an outright short will net you much more.
case in point, I went short FLC at 35 3/4 last week thru shorting Feb 32.5 calls, got 4 7/8 prem, but paid 55 commission one way.
today, FLC dropped to 30, a short would have made 5 3/4 with only 30 commission, but my call still would cost 1 5/8 to buy it back so if I close it today, I would only net 3 1/4, plus a lot higher commission.
It is a whopping 56% difference in profit one can make. I have a GTC order of 7/8 to close the position - if FLC spikes down to 28-29 like it did before x'mas, it may get triggered.
I will look into PHB why you are so keen in puts :) |
