After the move down on Friday and some profitable spread expirations, I was looking for either some more downside or a swing up. It made both. I saw the support at $150 and the morning bounce and feel like I missed the $8.10 sell of the NOV $150s, it went up and then back down, so I set my sell price at $8.20 and got filled and then it went down all day and bounced a bit at the end. Didn't loose much due to the delta on the long JAN $140 put.
Scenarios -
Up: expires worthless, sell another or look for another pull back
Sideways: time expires, take profits early
Down: wait 8 days from now and re-evaluate
Way down: Set sell limit past next support level around $140 and check for over sold conditions
13NOV07- I closed the $150 puts I sold on October 31st at $0.35 for a $785 profit. Only problem was I HELD THROUGH EARNINGS and the sucka gapped $20 bucks! and then kept going! This is the problem with holding long term calendar spreads in generally uptrending stocks. They can blow right through your profit range. Same thing happened with MMM. Now I am holding tight and looking at a bit of a rounding top consolidation. It may fill the gap or blast higher. Wait and see. Right now posting a total loss of $560 and the margin range sucks to sell anything worth the risk. Looking back, I should have taken the $400 2 day profit and split.
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