Tuesday's gap higher cut into our premiums at the open and forced me to raise stops on everything.
I hate it when we get caught trying to sell puts on a gap higher. The premiums deflate at the open and when the stocks begin to fade back again that premium comes back to our detriment.
For instance the FCX put was quoted at $1.40 but dropped to $1.13 at the open. SNDK put fell from .75 to .66.
These new option symbols are still causing me trouble. I have three quote systems and each is different. I am at a career worst in transposing letters and numbers. For clarification the RIMM put was a $65 put.
The rally today was a monster low volume short squeeze and I seriously doubt if it will simply continue higher. We may be turning in our bearish trend for one slightly bullish but I doubt it will be straight up. I think there will be some sideways movement first.
I did change all the stops so check the graphic for the new numbers.