New Trade:

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.

UAA Trade – Short 17FEB17 21 Put

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.

Option Coach

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