I've been playing Put on DELL for some time. For some strange reasons (we do make mistakes!), I bought a Jun 27.5 Call for $0.60 (way out-of-the-money) on 28 Apr. The stock keep going south. Sold May 25 Call for $0.95 (when the stock price was $25.31) on 3 May - thereby converting it into a credit spread. If the stock falls below $25 on expiration Friday, I would keep the $0.95 premium and still get to sell again the Jun $25 Call if needed.
Then the stock crept up (instead of down!). Just when the charts showed a strong bullish play, trading for DELL was halted on 8 May. DELL gave another downside guidance. Yesterday 's downslide saved my play. Yesterday, I bought back my sold leg (for a profit of course) and sold again at $0.70. My Jun 27.5 Call is almost free now (paid by the profits made from my sold leg). Since I am still very bearish on DELL, I also bought the Aug 25 Put for $1.15. DELL closed at $25.20 on Tuesday.
Targets remains at $23.26 and $21.90 (4-yr low).
- PersianCat04 (Millionaire-in-progress)
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