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?
