Option Investor

Option Writer Update

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Yesterday we posted that we wanted to sell the Oil & Gas Proshare Ultra Short (DUG) June 33 Call for at least $0.50/ contract. With Oil settling down at $122 per barrell yesterday, DUG closed up at $30.28/share. The options closed at $0.55 so you would have been able to get filled. I am throwing in a bid to buy the June 24 Puts for $0.05 in order to close the position. We are fast approaching expiration with two weeks left. So I would prefer to lighten up so we are ready for July! Also, if Oil bounces we can sell the June 27s (not a play yet ...stay tuned for the alert).

Valero (VLO) Calls were more elusive to get filled than the DUG Call options but we got them at $0.58/contract. I would like to buy the June 57.5 Calls to close for $0.08 or less.

iShare Russell 2000 (IWM). We didn’t get filled on the June 77 Calls before the markets sold off yesterday afternoon. With yesterday’s strength in the technology sector continuing into today’s action, I would prefer to sell the June 77 Calls at $0.60 today. The option is bidding $0.58 - $0.59. We are very close.

Good trading to all.

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