C

[dawgball]

Sold puts on Citigroup last Friday fo $0.50.

Strike: $20
Expiration: Jun 08
Sell Price: $0.50

These have dropped in value to $0.23 today which is a great thing, but I'm not sure what to do. Looking for opinion.

My question: Should I hold them until expiration for full profit (and risk being called) or lock in 50% of full expected profit now?

There are a few interesting plays out there that I am looking at but nothing that is completely motivating me to buy back my C puts.

Thoughts?

Is anybody else excited about the near and mid-term future of the US dollar? :00hour

 

[selkirk]

Dawgball would consider most US financials as spec. plays at this stage. most of the time when I (write) sell puts looking for them to expire.

sometimes regret this action as the stock may move up sharply and then back down in the following weeks/months....and buying them back would save me time and money.

generally let 90% of the options expire worthless...there are a few reasons would want to buy them back..

a) the optons are long and can take the trade off the books making a large gain quickly. also the stock is very volatile.

b) if the sector or even the market is going against the position, for instance in early dec/Jan would not want any put options on financials. also when the market is very bearish try to get out of most of the puts sold, or write calls to balance them off.

as for the US dollar it may rally as most believe it is oversold, however long term not that bullish on the US dollar, if resources stay high for longer periods of time there will be a transfer of wealth.

this will favour resource based nations. what happens after the election may also be of interest will there be new policies, a shift to protectionism, and trade barriers, and more taxes... time will tell.

one last point, is never could understand C, in most cases believed they should perform better and then they find a way to miss their numbers or have nasty surprises.

have owned the stock twice and after covered calls, and divs, made about 1.8%. maybe will get a plaque and frame it....

no someone who has put 60% of his money in C, at 22.10, he generally make large investments (bets) and either does great or misery.... most part well. still asked him if he was sure about C....a scary stock to own a large position on......

thanks
selkirk

 

[dawgball]

Did not sell it when I should have. Probably still safe with this, but it is down heavily in pre-market trading.

Pre-market numbers today:

20.61 0.62 (2.92%)

 

[selkirk]

when oil moves up that quickly the financials are going to get hit, was actually surprised the markets went up as much as they did on Thursday, with oil making a strong move getting everything back from wednesday.

no longer own WFC still have the 25 Jul puts, though that may not be the case for long, will have to see how next week turns out.

thanks
selkirk

 

[dawgball]

Bought these Puts back today for a very small gain before they expire today/tomorrow.

Bought them back for $0.35. After commissions, it was a profit of $0.13 per share or $13.00 per contract.