Ramie 7:52 am on Friday, April 7, 2017

PII Puts

Sold $PII May 19 70 puts @ 1.05. I’ve had pretty good success selling out of the money puts on this when it sells off. Stock at 79.89. Strike price below the September low.

geewhiz112 8:15 am on Friday, April 7, 2017

Earnings 4/25. Would this be better as an earnings trade and
wait for increasing volatility as 4/25 approaches?
- Ramie 8:30 am on Friday, April 7, 2017
  
  Hi geewhiz. I also answered you on OMM (so forgive me for repeating myself), but basically I’m trying to capture the premium on the move down in the stock. Who knows where it will be at earnings? If it’s here or lower then yes the premium will be higher but if it bounces before then it could be much lower. My position size is allowing me to add if the premium rises significantly. So I didn’t consider this an earnings trade as much as one where I was betting against another 11-12% decline after the stock having come down almost 15% already since last month.