The Volatility Trader
105 W. Monument Street
Baltimore, MD 21201
Friday, July 14, 2006
Email – #154
Cogent Update
The market maker on Cogent (Nasdaq: COGT) isn’t doing us any favors. The stock has dropped to $14.15 over the past few days, but our put option price hasn’t budged past $1.20 on the bid. This option should be at least $1.50 at the current stock price. If we don’t see any reasonable pricing soon, we may have to take a small profit and look for a better bet.
Stay on top of this one. If COGT shows any strength at all, the market maker will drop the bid on it.
Good trading,
Steve
