This post was originally written on March 5, 2013 at http://www.optiontiger.com/goog-bear-call/
Awesome GOOG Bear Call
Okay which one is it ??
In the Trading Ideas service, we put this GOOG Bear Call at 820 / 830 two weeks ago when GOOG was at around 785.
It moved up steadily, and we did 2 adjustments.
1) We bought 2 contracts of the ITM Call at 780 about a week ago when GOOG was at 800.
2) Yesterday, we took off 1 contract of the 820 short call for a loss of $400. So we were left with -9 of the 820 and +10 of the 830.
Today GOOG blasts off to 835. But look at how the adjustments worked out, even though the Bear Call went awfully bad. The 2 contracts of the ITM 780 Call produced profits of $4200 completely overcoming the Bear call.
We closed the position for a total profit of $1500. Amazing trade !!
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.