CMG
I bought the May $430 put for $16.10.
I sold the weekly $415 put for $4.30.
The news was mixed on their earnings and the stock is down over $6.00.
But, my May $430 put is only worth $16.20.
The premiums deflated after the earnings.
Yes the stock could go lower, or I can sell weekly's for the next 4 weeks.
Or, I can buy the $415 back right now, for 10 cents and sell my May.
That gives me a $430.00 profit in less than a day.
- $16.10 + $4.30 - $0.10 + $16.20 = $4.30.
An example of how the options should be
sold prior to earnings
to capture the high level of volatility built into the options.
Up next week, the VERY famous, and volatile, APPLE.
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