Email – #518

We had a trade sometime back on Bank of America where we owned puts and calls – a strangle trade. We took enough profits on the calls that we owned the puts outright for nothing. Those puts are now up a little and there is a good chunk of money on the table to sell them. Close out the second half of this trade for profits by selling your Bank of America January $7.50 PUT options BAC JAN11 7.50P.

The next position that I’m looking at is the Pulte Homes put position that is picking up steam. With markets this volatile we need to be alert for opportunities to cash out of our 2011 options since they are at greatest risk of losing value quickly.

Karim