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Analog Devices (ADI) close out call is stock price hits $39.65, hold puts for loss till expiration Analog Devices (ADI) This stock has failed to move, 86% of this stock is owned by institutional investors. Expect them to sell this stock after closing below the 50 and 200 day moving average, we can wait for our puts to make money. Close out the Jan 40 calls options for $1.00 or more, if you didn't catch the pop after earning announcement earlier. Cost of straddle was $1920, -$1000 for calls= $920 lost so far.
The current Beta of this stock is 2.30, which means it is more volatile than the overall stock market, and hence the options have a higher net cost when entering into a position. Will not trade these until the Beta of the Stock moves closer to 1.50.
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