Trade Update Nov 15th, 2012 at 1:13pm: I am closing the second half of this winning trade. While my view on the stock hasn’t changed, I am merely lightening my load a bit on the short side from a portfolio stand point, this stock shows some relative strength of late and the stock price is almost right int he middle of my strikes. I will definitely look to re-establish a bearish view on any significant rally.
Action: Sold to close 2nd 1/2 CL ($103.62) Dec 105/100 Put Spread at 1.75 for a .65 gain, average gain of .60 for the entire position.
Trade Update Oct 25th, 2012: CL reported disappointing results this morning and the stock is down 2%, in line with the implied move. I am going to use this weakness to take half of my Dec Put Spread off for a gain and let the other half ride for a bit…….I think there is a distinct possibility that the stock trades $100 in the next couple months in a flat to declining market.
Action: Sold to close 1/2 CL ($104.18) Dec 105/100 Put Spread at 1.65 for a .55 gain
Original Post Oct 23rd, 2012:
EVENT: CL reports Q3 earnings on Thursday Oct 25th, prior to the open. The options market is implying about a 1.75% move which is basically inline with the 4 & 8 qtr avgs of about the same.