Radio Shack Short Sell
December 4th, 2009, 11:36 am EST. Posted under Margin Portfolio (MP) by ThetaTrader.
Post Tags: , CLOSED, RSH
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12/04/2009 – ThetatOptions Margin Portfolio – DEC Short Radio Shack
We’ve been watching & waiting for another chance to “short” Radio Shack. With (2) weeks left to go until OpEx, we feel it’s fairly safe to short Radio Shack now. Our cost basis will be 20.40, that gives us a 5% cushion from the current stock price of 19.45.
Order:
Sell To Open: (5) RSH DEC 20 Call – 0.40 Credit
Position: $1900 Margin for two weeks to make $200; that’s 10% risk/reward for (10) trading days.
December 8th, 2009 at 3:21 pm
Up 50% on that. Cash out?
December 11th, 2009 at 12:22 am
Zuko,
We have the order in to buy back the short callers @ 0.05….it should fill by Tuesday or Wednesday. I don’t want to buy back the caller on Friday, when we can gain (2) free days of decay over the weekend. Radio Shack has to put on 1.4 before we start to loose & I haven’t seen any unusual volume on the 20 caller yet. Besides, 20.40 would be their 52 week high!
VLO: same order….buy back the short PUTs for 0.05
ThetaTrader
December 14th, 2009 at 5:09 pm
Update….Radio Shack was upgraded this morning and the stock jumped 4% to 20.30. Worse yet, the option buyers were picking up the 15 DEC Call contracts & apparently selling the 20’s. There is real slim chance this thing could finish at 20 by Friday, but we might need to place an order to get out for even. What a huge disappointment after being UP 50% on the this trade.
After Hours: The stock is UP again $20.65….where’s the Grinch when you need him ?
VLO: We bought back DEC 16 Puts today…at least that trade went our way!
ThetaTrader