A little over a week ago, I told you about Beacon Roofing Supply (BECN), detailing how I bought call options with the hurricane about two days away. I made a quick 16.6% profit on that trade, and then waited for the political hysteria of the Northeast to die down before entering another trade. BECN went up about 25% on its move from $15 to $19 before the signs of a top began to emerge.
And then with Hurricane Irene poofing out over the Atlantic, it was time to reverse roles, and buy several PUT contracts on BECN.
Late Tuesday afternoon, I bought the October 22 puts, at 1.90, and again sold them late afternoon yesterday at 2.40, for a 26.3% profit in less than two days!
And of course, since I frequently sell too soon (those reading this blog may choose to hold my positions longer, I just like taking the profits sooner, thus the name of my site), BECN dropped some more today, with the Put going higher this morning than where I sold.
But who cares?
So we’ll let the Put ride out some more, as the general market blow down on bad jobs news continues, because off in the distance looms Katia, with the potential for some sweet call option profits after Labor Day….
A quick look at the BECN chart:
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