|This Trade Was Closed July 16, 2012|
I was interested to see if APOL would drop further but it didn’t today. I think support is in play and its best to just close the trade.
I sold it just a few minutes ago for 3.30 per share, which was about a 70% gain. Not too bad for ‘selling the news’.
Original Trade Post:
The company reported earnings (falling year over year) that were way above estimates. Appropriately the stock popped in the aftermarket last night and is up at resistance today. When I see this on APOL I get very itchy to ‘sell the news’ and profit from the subsequent decline when investors remember that the news may have been better than they expected but the trend is still down.
I think APOL will fall back to $31 per share at a minimum in the short term, which is approximately where I would place support. My plan is to exit the trade at that level.
- The Ticker: APOL
- Target Price: 3.00 per share
- The Trade
- Buy to Open Aug 2012 35 Puts at 1.97 or better
- Trade Opened: June 26, 2012
- Trade Closed: July 16, 2012
Chart courtesy Finviz. Click to open larger.
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