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November 21, 2009
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April Expiration Profits
April 17, 2009April Expiration Profit Update
Dear Fellow Options Traders,
It's the third Friday of the month, and we have a couple of shorts and couple of credit spreads that will close as April options expire -- all for 100% profits.
Let's review our latest winners ...
On Nov 26, 2008, we sold short Shaw Group (SGR) April 12.50 Puts (SGRPV) as part of risk-reversal spread for $2 that will expire worthless for a 100% gain.
On Feb. 11 we sold the B/E Aerospace (BEAV) April 7.50 Puts (BQVPU) for 40 cents and bought the BEAV April 15 Calls (BQVDC) for 25 cents for a 15-cent credit. With the stock at $12.30, these options will expire worthless and we will keep the 15 cents for a 100% gain on the trade.
On March 12, we sold short Schlumberger (SLB) April 35 Puts (SLBPG) as part of a risk-reversal spread for a credit of $1.35. We have closed the calls. With the stock at $46, these options will expire worthless for a 100% gain.
And finally, also on March 12, we sold Yahoo (YHOO) April 11 Puts (YHQPK) for 31 cents and bought YHOO April 17.50 Calls (YHQDR) for 18 cents for a net credit of 13 cents. With the stock at $14, the options will expire worthless and we keep the 13 cents for a 100% gain on the trade.
With the April expiry soon in the books, we will move the May options to the front burner. Have a great day.
Nick Atkeson and Andrew Houghton
Editors
Options Trader
