Dell-icious, You helped me make a nice profit. Thank You!
My post 83783 outlined a short straddle based on your input, and I promised to report in 9 days on the December Dell options I would play based on your data:
-10 65C @ 4.12 = $4,092
-10 70P @ 4.62 = $4,595
-10 65P @ 1.00 = $967
Total short options: $9,654
Closing buy backs: $6,838
Profit from shorts $2,816
No Dell options held till X-day would have made a profit had I been long. The only profit opportunity was naked puts.
In this option month I closed 20 plays, 18 with profit = $31,443
2 were rolled for larger premiums; Will make a profit later or roll them again.
85% OF THE PLAYS WERE NAKED PUTS. Some were Mindspring.
Dell stock went up $2. It would take 15,000 shares to equal these plays, plus a lot more invested, as the puts were free! I used to pole vault, run the half mile and hi-hurdles. Now I've taken up shortputting! <gg>
I sincerely appreciate your important, profit producing post, Dell-icious, Thank's again!
Don |
