Sold 1 Put contract of the 21 UAA 17FEB17 for $0.44. Huge gap down and it held the low near 21. I am willing to buy some here so I am selling a Put to see what happens. Break even for the position is $20.56 prior to commissions. If there is a pull back from here I will look at getting long the stock and selling a covered call to reduce cost basis further.
Post Is Short and Sweet:
Just a quick note prior to closing out this update. Selling the put here makes a lot of sense to me. I think they may have gone a bit overboard with this one, so a bounce could easily happen. I mean, you could have owned this near 50 in late may last year. Ouch.
Facebook had a really good quarter after the market close. That is following on Apple’s really solid quarter. We need a trifecta from AMZN tomorrow I think to get the markets back in rally mode versus this current consolidation period that they are in.
I will be looking to sell another put in UAA to build the position, and will most likely get up to 3 contracts with varied timeframes to try to take advantage of the really beat down stock in a company that I really like.
Look for updates on Twitter for and put or call selling as I open and close new trades.