Bunge reported earnings today, seemed to meet/exceed expectations, continued their practice of not providing guidance, and.... the stock traded down over 1-2%.
Full disclosure, I only glanced at their earnings release. I was was pleased to see no big negative surprises in the report, (From my experience, they have had some fairly large misses/swings in results in the past). I'm assuming the 1% drop is mostly just market noise.
The main reason calls were sold two weeks ago was to provide some protection against a big downside miss. Since there was no miss, I decided to take the opportunity of the stock trading down to take off this covered call position. The specific trade made a modest, non-material (.4%) gain.
The main point of the option position was to provide some down side protection in the event of an earnings catastrophe. Since the event catalyst has passed without major problems, I no longer wanted this option position to act as a cap on any further potential gains.
Long two lots...Still bullish. Stay tuned.
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