1) way to go ! FYI, as I mentioned, "after the first hour Tues." I recommended taking most all profits in most all Puts issues I had previously given out, weeks ago, like the Internets, and AMZN, target around, 70-80....good for you.....
2) but still, an interesting "PSYCLE sm" Lesson: note, one needed a 130 to 70 decline, almost a 50 % drop, to create "just" a 150 % rise (say, 15, to 40) in overpriced puts, even when a good guy timed it correctly....where was AMZN when these puts were 15. ? was AMZN still out-of-the-money ? the point: this example had "just" a 3-to-1 leverage, see it ? WE prefer 5-or-7-to-1, when correct, as below...
I want a stocks, that, when/if it fell 45%, might see the L.T., in-the-money Put, rise 300 % or more, not "just 150 %" (everything is relative, just an example....and NOT meant to denegrate your excellent result/trade)
I am certainly happy it worked out for you, and you DID choose the right pattern, but, this is why I still shy away from high-priced puts, preferring quieter stocks in toppy patterns, with options costing less, percentage-wise, and not requiring such large declines, to create big % gains when correct, dig ?
3) in this case, as great as someone's timing was, the idea is to NOT need such a big decline in the stock, in order to make a large % put gain....i.e., a $ 35. stock with 35s puts at 3 1/2, needs only to fall 20 % to create a 100 % Put gain, see ? but,"sexy" stocks have options which require bigger, and rarer, moves,
4) and, with , say, Utilities, a $ 40. stocks has puts for maybe $ 2., which, even if stock only falls 10%, options might double....more power on OUR side, this way, most of the time...enjoy, Jim
Hope this helps...best wishes, and keep up the good work, Derrick.... |
