Peabody Energy Corporation (BTU)

[LouisDesyjr]

Put options trades

I sold all the April 15 and April 22 put options yesterday. I had $1.50 and $2 prices. I got lucky in that I sold when the stock was in the low $0.60s. I missed the drop later in the day to $0.55, but at least I didn't hold on to them as the stock rose to $0.82.

I still have $0.50 Jun put options that I am going to close out today. I should have gotten out of them yesterday also. Originally I bought since I had expected when they filed that the stock would drop to $0.30 or under, but I think the shares are going to 'hold up', almost right until they get canceled.


The April 22 trade returned 40%, but that is because I bought them so long out that that the price was high.

The April 15 trade returned 193%, mainly because I bought most just several days prior to the filing. There was a lot of risk here, because if BTU had waiting until Friday to file, I could have been stuck with trying to close out the position when the stock didn't open for trading on the day they filed.

Louis J. Desy Jr.