Notes: Sold off 2 of the last 3 earnings reports and the stock is down from recent highs and I think it will test lower after the report on Oct 2nd. I’ve also sold back half of my RIMM call spreads I bought two days ago for $0.30 (I payed $0.15).
Associate Alex’s Trade
First off, I hope nobody played the Apple pick yesterday because it got crushed.
My trade: Sell 13 lot ORCL Weekly (Oct12) 31.50 – 30.50 Put Spread for $0.28.
My reward: $28 per one lot
My risk: $72 per one lot
Why I like this trade: ORCL had a slight dip after it met analysts’ expectations but I think it should bounce back and I only need it to move $0.05 for the put spread to be out of the money.
Alex Kalish has a masters in economics from Suffolk U. alexk@keeneonthemarket.com
James Ramelli has a B.S. in Finance from UIUC. james@keeneonthemarket.com