Wednesday, August 8, 2012

closing - $PCLN credit put spread entry

21 sep - let this go the whole way and will expire at max profit today. never did pull the trigger to get into a bull call spread along with these credit put spreads.


8aug - Priceline got crushed on guidance as we all know. surprisingly tight trading range today. expected it to whip around. no good defined support levels to shoot against for strikes so have to just base selections on delta of the strikes, keeping in mind my target delta range is in the 15-20 range for puts..not always but most of the time. so with stock near 570 i entered into the SEP 505/510 credit put spread for .80 credit. Trademonster analyze tab shows this spread to have a 84% probability of max profit at opex. bid /asks for priceline have always been wide .. .60/1.00 type wide .. i pick an amount near the midpoint and put in a limit order , if after lunch it will always be a AON order.. plenty of time till SEP opex so if stock rebounds on positive europe headline i will look to exit if i can get 40-50% of the max profit...tougher with that wide spread though.

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