sell -1 Nov 6, 2015 $76 put at $1.07
Tuesday, 11/3/2015 (6:46:53 am, PT)
buy back my put at $1.00
NET PROFIT: $3.91
Comments:
- Visa reported earnings before the Opening Bell on Monday, 11/2
- Immediately after the earnings release, the stock dropped to an intraday low of $74.53 (not good)
- By the end of Monday, 11/2, my short put was ITM (not good)
- On Monday (11/2) evening, I decided to place a closing order to buy back my put at $1.00 to break even and cover my fees
- Before the Opening Bell the next morning (Tuesday, 11/3), Visa announced that the company was planning to buy Visa Europe for $18.2 billion and the stock shot up
- My closing order at $1.00 filled 16 minutes after the Opening Bell on 11/3
- I could have made a lot more $$$$ if I had left my put option alone
- My trade would have ended perfectly if Visa's CFO had announced the acquisition during the conference call on Monday (11/2) rather than waiting until the next day!!!!
