Replies to post #13694 on Options Wonderland

[The_Game]

I think GOOG is about done falling. I want to take advantage of collecting the premium on out of the money puts by selling them. I read some people buy the stock that they plan to sell the premium, but I don't know about doing that lol. Tomorrow the premiums on the out of the money puts should really be good!

[3xBuBu]

bear spread study
Sell GOOG Feb08 570 => (18 - 23.7) = -5.7 (debit)
Buy GOOG Feb08 630 => (62.1 - 47.8) = 14.3 (credit)

Net = 14.3 - 5.7 = +8.6 [8.6/(47.8-18) = 28% gain]
additional profit = 18.9 - 16.3 = 2.6 if close both positions yesterday [37% gain]