[Buying Puts on Nasdaq Stock Market Inc (NDAQ)/Buy ing to Open Sept 35 Puts (NDQUG)/Day Order/Limit $5.90]
Dear Member:
Nasdaq Stock Market, Inc. (NADQ) has broken below the 200 day moving average and is looking very bearish to me. The stock is currently trading around $30.62 and I am placing an order to buy the Sept 35 calls at a limit of $5.90. If filled at $5.90, the premium for the time portion of the put would only be about $1.50. The current delta is near -.60. A close above today's open would be reason to exit.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft
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