Per our sell alert yesterday, we closed out our CSTR bull put spread. Our reasoning was that, although we are still very bullish on the stock, CSTR looked like it was set to pull back and was in jeopardy of closing under $43 by October expiration. So, rather than risk a maximum loss of $650, we took profits and locked in a nice 28% gain. Additionally, we've still got our other position on CSTR open, which is also up nicely, and well positioned to take advantage of longer term upside movement in the stock.
Trade Details:
Trade Date Action Symbol/Desc. Qty Price Comm. Net Amount Gain/Loss for symbol
COINSTAR
10/06/2010 O STC CSTR Oct10 40 Put 4 $0.26 $6.47 $97.48
09/15/2010 O BTO CSTR Oct10 40 Put 4 $1.57 $6.48 ($634.52) -537.04
10/06/2010 O BTC CSTR Oct10 43 Put 4 $1.15 $6.48 ($466.52)
09/15/2010 O STO CSTR Oct10 43 Put 4 $2.98 $6.47 $1,185.47 718.95
Total Realized Gain/Loss for CSTR: $181.91
Total Realized Gain/Loss Percentage: 28% gain
Chart:
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