PLAT Update!
Today I purchased 10 Dec 25 calls @ $3. Now comes the hard part -- waiting for
the rebound! Here are the numbers:
1. Bot 2,000 shares @ 24.00 = 48,000 - COMPLETED
2. Bot 1,000 shares @ 23.00 = 23,000 - COMPLETED
3. Bot 10 Dec 25 calls @ 3.25 = 3,250 - COMPLETED
4. Bot 10 Dec 25 calls @ 3.00 = 3,000 - COMPLETED **today**
5. Bot 10 Dec 22.5 puts @ 1.125 = 1,125 - COMPLETED
6. Buy 10 Dec 22.5 puts @ 1.50 = 1,500
7. Sell 3,000 shares @ 26.25 = -78,750 (one trade)
-------
1,125
This position still retains too much risk. My previous post was in error. To be
risk free the remaining trades would go like this:
8. Short @ 26.25 & cover @ 24 = 4,500 - 1,125 = 3,375 (2nd trade)
9. Buy @ 24 & sell @ 26.25 = 4,500 + 3,375 = 7,875 (3rd trade - risk free)
Here's a better idea (at least for me):
6. Sell 3,000 shares @ 26.25 = -78,750 (1st trade)
7. Sell 10 Dec 25 calls @ 5+ = - 5,000 (sideshow)
-------
- 5,375 (RISK FREE AND PROFITABLE!)
Now I'm risk free with only ONE trade! From here I can trade the range
for $4,500 monthly profit until the party ends.
Does anyone have other ideas they would like to discuss?
Can anyone else suggest other stks that may be good RRT canidates? |
