| This Trade Was Closed August 13, 2012 |
Closing this trade @ 1.05.
Original Trade Post:
Monitoring option trade data today, I found Newell Rubbermaid to be of interest. AUGUST ATM Call and Put trading volumes were extraordinarily high. Also looking at Implied vol compared to historical vol, the Implied vol is lower compared to historical vol, so going long premium makes sense in this case. From a technical perspective, Newell has been trading in a pretty defined range, of late, but if you look at how the stock has reacted to earnings announcements, it’s moved quite a bit on the news (see chart showing earnings releases in red rectangles) so i think there’s a good chance this straddle ends up profitable
7/24 trade update: Sold the Calls at .40. Cost basis was .73. Still holding the Puts, currently worth 1.15, originally entered at .72
Trade Details
- The Ticker: NWL
- The Trade
- Buy to Open Aug 2012 18 Puts at .72 or better
- Trade Opened: July 18, 2012
- Trade Closed: August 13, 2012
Chart courtesy Finviz. Click to open larger.
Additional Image Provided by Terrence:
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