Sunday, May 8, 2011

Short Game - Short CRM Again... via options

Took half the proceeds from the successful short sale of CRM and reinvested them in the May $130 - $110 bearish put spread on Friday's rebound in the stock.

Overall rationale is the same as before. However, these options expire shortly after their earnings announcement so this is somewhat of an event play around the earnings announcement. Also note that the risk of this trade is limited (defined by the cost of the spread) and is in essence playing with the houses money won via the earlier short position.

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