Office Depot 13% up on fancy new investor. Ha! I'll take some of that on the way back down.

This morning Office Depot popped 13% on the news that a fancy news investor bought 13% of the company and he believes the company can be better than it is. When something like this happens I am looking at the options to see which ones are getting killed. I found a $4 PUT option that lost 31% of its value on the move this morning. Bought 6 contracts to catch it on the way back.

Now, Office Depot may very well be on its way up to a long term gain. But in the short term it is not going to
hold and I'm going to get some of that 31% back in the next few days.

I'll let you know how it goes!

Thanks for reading!

Straight from the Chart 

Disclaimer:

Just to be clear, nothing that I'm posting on this blog is in any way advice that should be followed by anyone else. All investment decisions should be made carefully by all individuals taking into account their own financial situation and appropriate levels of risk. Do not take anything I say for anything more than it is, opinion, speculation, and woefully undereducated guesses as to how I think a few stocks are going to perform.

Staples gets jammed! Sold SPLS PUT option for 12% Gainer! Keep your eye on SPLS. Might pick up some FB!

You don't need much of a move when trading options to make a lot happen. As long as you are on the right side of it a tiny move like on the SPLS chart this morning can net much more dramatic results on the options side. 

After my 15% gain on SPLS CALL options last week I immediately bet on the downside with PUT options to catch the downside of the overreaction to buyout rumors on Friday. When the market opened this morning with only the slightest momentum on the downside I sold for a 12% gain in 3 Days (1 Trading Day). Not too shabby. 

So with all said and done I came out of this SPLS swing with $226 that I didn't have last week. With the tiny dollar amounts that I am trading, remember I only started with $1000, that is 22 % up for the whole portfolio. That is about equal to what the DOW is up so far this year. 

Remember though, if I had bet on the wrong side of this I could have gotten crushed on the downside just as quickly. Options are awesome when you catch the right swings but you have to be careful. 

Now that I have some capital free after cashing out of SPLS I might take another look at Facebook (FB). I think there may be some upside there. The chart looked good last week. 

Thanks for reading!

Straight from the Chart 

Disclaimer:

Just to be clear, nothing that I'm posting on this blog is in any way advice that should be followed by anyone else. All investment decisions should be made carefully by all individuals taking into account their own financial situation and appropriate levels of risk. Do not take anything I say for anything more than it is, opinion, speculation, and woefully undereducated guesses as to how I think a few stocks are going to perform.