Good thing you were able to wait until near the close to unload the options, it really spiked near the bell. I get nervous 2 weeks before expiration, much less 2 minutes.
I'm holding on to my February options, (all Feb 150). It's risky, as usual, but I feel that the stock has been artificially held back by expiry, the 'brazilian crisis', the trial, and the general market pullback. It's my opinion that the full runup to earnings has not been built into the stock yet, so there's easy points there on the upside. I think we have one last overbought leg up here on the Nasdaq, and Microsoft may be a prime beneficiary.
If MSFT blows out the whisper by at least a nickel, I'm holding February options for a post earnings runup. Similarly, if they announce a split, I'll hold also. If they only come in line with the whisper number and don't announce a split, I'm gonna be ready to unload all options.
Still putting in overtime on my list of puts to buy, because I believe a Nasdaq correction is inevitable. I'll probably play it with puts on one of the higher priced, second tier semiconductor stocks, and will time it after this next leg up, have you seen the spike on the SOX index? Want to make some cash on the way down, so I can double up on Microsoft calls on the way back up later this year!
I remember buying the January 120's at 1 15/16 a contract! |
