Well, with Citigroup’s news this morning driving the XLF way up, and the SKF(19.94 -0.09) 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(19.94 -0.09) 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(19.94 -0.09) 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.
