Close out calls if stock price is below $35.36, hold puts until expiration
Agilent (A) has two downside gaps to be filled since Sep. Expect this to hold up until an earnings warning is issued. Close Jan $32.5 calls any price above $2.5, high for this option was around $3.8, if you were playing these hope you remembered my first rule about options? Close the position out if gain of 50% - 80% your price, in this case we bought the calls for $2.2, the high was $3.8 There are 24,000 contracts at Jan $35 strike price, expect strong resistance to move higher. The Jan $32.5 put options were bought at $1.55, hold these till you hear about earnings warning in Jan, stock price will fall below $29, then close these put options for huge profits.
Closing Jan $32.5 calls for $2.5 or higher, = $1250, net loss so far of $-650 |