Follow me on Twitter!

Follow me on Twitter!

Thursday, April 21, 2016

Celgene (CELG) Call Options

4/14/2016 (10:52:10 am, PT) (FP)

sell -2 April 22, 2016 (wk 4)  $111 calls at $0.43

Why did I place this trade?

  • stochastics in overbought region
  • 83.50% probability of success
  • CELG does not pay dividends (important when selling calls)


4/21/2016 (6:36:05 am, PT) 

buy to close calls at $0.05

PROFIT:  $76.00


SUCCESS!




COMMENTS:

Even though there's only one day left until expiration, it's always a good idea to buy back your short options at $0.05 (or less) to remove the risk.

It's a good thing I did that on 4/21 because exactly two hours later CELG jumped to $109.82.  And who knows what will happen the next day, right?