Reason I like this Trade: To be honest, I like this trade, because a saw a customer come into the market and buy Calls in ITW on the March 55, 57.5, and 60 line. I usually do not like to overpay for options, because the customer bought these ITW March 67.5 Calls for $.75, but I looked at the volatility and I realized how cheap it was, around 20.5%, so I thought it was good enough to jump in and buy Calls in ITW. I will be looking to piece out of this position if the stock rallies higher. Please feel free to email me with any questions at andrew@keeneonthemarket.com.
UPDATE 2.9.2012 I sold 15% of my position at $1.05 leaving me with an 85% position in ITW. These Calls are currently worth .85 cents and im hoping for some more upside in ITW.
UPDATE 2.10.2012 These Calls are currently worth $.75 and I will leave it on for more upside.
UPDATE 2.14.2012 These Calls are currently worth $.85, so this trade is a small winner, might look to Punt it on a POP higher.
UPDATE 2.15.2012 This will be the same update as yesterday as these Calls are still worth $.85 and I am still LONG them.
UPDATE 2.16.2012 Getting bored very easily is a flaw and advantage at the same time. I want to take the best and highest probable trades, and I did not like the way ITW was trading so I punted these Calls at $.85 and took a small profit.
Read more about money by keeneonthemarket.com