My COF is cured

It’s been a little while since I posted a sale, but its not because I haven’t been in the profitable range (well, maybe a little of that too). Today I decided that COF isn’t going fast enough downward for me so I’ll just sell it and start looking elsewhere. Of course, having a cash account means that I don’t get the $620 back into a usable area of my account the same day.

With the requirement of having to wait until Monday in order to spend my newly profited $146 there’s little chance of me buying something today. Though with the $55 in my buying power, I am a force to be reckoned with.

Holding a financial stock and making profit is decently easy right now and should be for a few more weeks.. maybe. I won’t be holding C much longer, as it seems to have support in the $21 range which is not quite enough for me to make a profit with what I have. I would need C to drop to $20 in order to be profitable if you remove the time value, which might not happen anytime soon.. which is too long for me to be patient in waiting for.

Sold:
COF May08 $45 put (COFQI), 2 @ $3.10
Entered 3/25 @ $2.35, exited 3/28 @ $3.10
32% profit for +$146
stock price entered $52.69
stock price exited $49.46

Interesting how the stock lowered in price about 6% but the option climbed nearly 32%. That’s the sort of math I can live with.

Of course, that sort of multiple doesn’t usually exist with ITM (in-the-money) option positions.