Wednesday 23 December 2009

BCM Put Option Position

The stock 3328 (BCM) closed today at $8.78, by looking at my position I reckon there is 50-50 chance that I will get exercised and buy the stock at $9.00. In case I get exercised, my real buy price will be 9-0.24 (minus the premium from writing option) which is $8.76 per share. I will be happy to buy BCM at that price. If i don't get exercise, I will write some other stock options if opportunity arise. But at this moment I am also considering buying a certain stock with a target of 20% ROI if that stock fall to my price range. If I do so, I might need to buy back my put option at a loss so that I can free up my capital to purchase the share position.

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Trading Room
www.tradingforreal.blogspot.com

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