Papermoney – April SKF Put Update – Letting the profits ride

by Ryan Barr on March 10, 2009

in Papermoney

Well, with Citigroup’s news this morning driving the XLF way up, and the SKF way down, these April Puts have become quite profitable.  In fact, intraday the Puts had a return of more than 50% in just a few short days.

I firmly believe that SKF has a long way still do drop; however, there is no reason to kick a gift horse in the mouth.  As a result, I’ve closed 10 of the SKF puts for $17.30 a piece.  This has locked in a little more than $3,700 in profit and now I have 3 SKF April 140 lottery tickets available to run as I see fit.  I’m expecting SKF to continue to crash out as we move into Wave 4 up in the general markets.

I’ll post some additional analysis on this trade later this evening or tomorrow.  I have class tonight, so it is a busy night for me.