Most longs get a big banana today, with a steep decline in many stocks. AAPL leads the way down on reports of slower than hoped for sales of the new IPhone. TXN also gets hammered on a so-so earnings report. The puts I sold yesterday, edge up 6 cents in value (that's a loss for me) on a $1.66 decline in the shares.
TXN illustrates how difficult it is sometimes to buy options and make money. Even a steep down day with the entire market in the tank, and someone buying that put yesterday is about break even with that 6 cent gain.
I am tempted to buy puts on SHLD, or to do some kind of bearish spread on AAPL. I remind myself, that I am not that adept at navigating fast moving markets. The exception is to get out of a position before it collapses. I had opportunities to close the TXN puts at break even minus commissions, and the afternoon decline took that away from me.
I am still long RJET and that got hammered, partially because JBLU went down on its earnings.
No comments:
Post a Comment