Seems like easy money

January 19, 2007 — Tim

While doing some research with the option scanner at Trade King I did some quick research on IIG. It has big volatility and looks like it is in for some bad news. They have an earnings release on February 6.

So I bought a Feb25 put. This is not what my strategy is for this account, but it seems like a no brainer. Will know in a couple of weeks whether I have a brain!

Depending on what happens next week, I may still be able to buy the stock, sell a call and lock in a bunch of time premium. I haven’t quite worked out the math yet.

From my years in Las Vegas this would be like trying to take the middle when betting on a game.

Here’s to easy money!

Posted in Strategy, Trade King, options.

One Response to “Seems like easy money”

  1. iMpeded iMergent | 31 Contracts Says:
    January 21, 2007 at 8:10 pm

    [...] over at Learning Covered Calls calls our attention to iMergent (IIG), a “leading eServices Provider helping small businesses [...]

Leave a Reply

« End of the Week - Position expiring

Position called away »