[Buying to close Sept 45 Puts (AZNUI) on AZN/Day Limit $3.40]
Dear Member,
This morning, AZN gapped down at the open more than $2.00. That move in the stock exposes me to the distinct possibility that the stock would be put to me at 45 in which case I would have to assign my January 45's as well and that would cause me to lose the time value in the January's. I am, therefore, buying the Sept 45 puts (AZNUI) to close for $3.40 to close that leg of the position. I will then simply stay in the Jan 45 puts as a directional position and my initial exit on that leg will occur if the stock price exceeds $42.55. As the stock price settles or moves, I may well have to adjust further in order to minimize loss or increase profit.
DISCLOSURE: At the time of publication, I am long the Jan 45 puts on AZN and short the Sept Puts on AZN.
Sincerely,
Bill Kraft
CutLoss, Inc.
|
