Monday, February 14, 2011

Bunge Jumped - Covered Option

Bunge jumped very nicely in the two days after earnings.
(or should that be Bungy jumped...lol)

Seems to be stalling at its technical resistance around $72.50. Covered the Feb $70 put which was sold on Thursday for $.20. The small remaining yield did not seem worth the risk of holding for a few more days. This option trade yielded 2.2% of risk capital in 2 days!

Still bullish on Bunge and will be looking for ways to add a second lot to this trade on any pullback.

No comments:

Post a Comment