Post by cosmic on Sept 14, 2010 9:32:07 GMT -5
You may recall from a wrap a while back that I purchased some Kohl's Sep 42 Calls.
The purchase was at 5.75, and about 2 days after I purchased them, the floor fell out on KSS pricing. Didn't make any sense, it had been trading in the 50's, I waited for a pullback to a known area (47 area), and then did the transaction.
Price fell to just above 42, and I watched the bid drop from 5.75 to lows near 1.50+. I didn't add, which in hindsight I should have, but options trades for me are limited in size, always.
I held, as it was initially a deep ITM calls with very little TP. I figured I'd take the fill.
Today KSS popped on good news, and I sold the calls for 7.40.
The purchase was at 5.75, and about 2 days after I purchased them, the floor fell out on KSS pricing. Didn't make any sense, it had been trading in the 50's, I waited for a pullback to a known area (47 area), and then did the transaction.
Price fell to just above 42, and I watched the bid drop from 5.75 to lows near 1.50+. I didn't add, which in hindsight I should have, but options trades for me are limited in size, always.
I held, as it was initially a deep ITM calls with very little TP. I figured I'd take the fill.
Today KSS popped on good news, and I sold the calls for 7.40.