Anyway, I’m not complaining based on the 100% profit I’m making from the two and a half months trading the option of this stock. Noticed that I deviate from the rule of buying option with minimum of more than 120 days to expiration? Well, sometimes the market sentiment of a particular stock would made you real confident of the fundamental of the stock. Hence I bought with less than the best-of-practice time-value. And needless to say, the time-decay kicked-in soon after (as you can see from the chart).
It took more than two months from the date of my entered position for the stock to breach higher over it’s resistance level of $89. Based on Apr-16-2007 stock’s performance and the way the Dow Jones behaved, I concluded that this is my last chance to take profit before time-decay eats further into my profit. Please note that the April-2007 expiration is days away.
Other Articles That May Interest You …
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- Ready To Take Money Off The Table – CAT, ILMN, EL, MAT
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April 17th, 2007 by financetwitter
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