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TRA - Terra Industries LEAP

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The plan for this morning was to enter the $60 LEAP on TRA at something less than $8. The $55 leap was quoted at $8.50 at Friday's close. TRA spiked over $2 at Monday's open and the leap prices exploded.

Instead of having the $60 leap price normalize with the rest of the strikes the lower strikes rose to normalize with the already overpriced $60 strike.

I would NOT enter the TRA position today. Let's wait for a pullback and for some of the excitement to bleed from TRA.

Jim Brown

Leaps Trader Intra-Week Blog Archives