There’s good news and bad news. The bad news is we need to close out the SLV December 18 call, as well as the second half of the Janus December 15 put. The first half of the Janus put was closed with gains of 28%. These should have worked out much better than they did.
The good news… The second half of the Lennar (LEN) February 47 put now trades at $3.05 x $3.20, per eTrade quotes as of 11:22 am. Consider selling to close this position. Homebuilder stocks have been all over the map today.
Also, if you’re happy with the current gain on the Wal-Mart (WMT) March 82.50 put, consider selling to close just half for a quick one-day gain. We issued a buy just yesterday morning, as the put trade at $2.05. According to eTrade, the put last traded at $2.80 x $2.85 as the underlying stock falls $1.36 on the day.
The bulls are finally realizing the market is over-extended.
Ian L. Cooper
Inside Value Trader