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November 21, 2009
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Wright Medical Group (WMGI) Profits
April 17, 2009ACTION:
Sell to close 50% of the WMGI Aug 15 Calls (QWMHC) for $2.40 or better for another 100% gain
Dear Fellow Options Traders,
On March 17, we recommended to buy the Wright Medical Group (WMGI) Aug 15 Calls (QWMHC) for $1.20 or better along with selling the WMGI Aug 12.50 Puts (QWMTV) for $1.90 for a credit of 70 cents. The stock has moved almost 25% and the calls have doubled. There is plenty of time until the August expiry, but we think it is prudent to take 50% of the calls with the option up 100%.
As you know, we have put on several "net credit spread" trades whereby we have sold a put and bought a call to collect a net premium up front and make even more money when we close the trade. If we simply followed the theorems of math, there is no simple way to calculate the percentage return on investment, as there is no investment.
We recommend that you "sell to close" 50% of your WMGI Aug 15 Calls (QWMHC) for $2.40 or more for another 100% gain.
Have a great day trading.
Nick Atkeson and Andrew Houghton
Editors
Options Trader
