Again, profitable on both sides of the trade. The 2.50s got put to me as planned. ESLR touched 2.43 today, and currently I have a 2.25 cost basis. My Sept 2.50 puts are donw to .45 from the .80 I sold them at.
Two options now. Buy back the 2.50 Sept puts at .40-.45 my cost basis then drops to 1.75.
Hold and wait for September as planned then wait for the ride up towards the latter part of the year.
The largest risk right now is Jul 30 4pm earnings. Yes, this Friday! Could ESLR be in the earnings trend, being bought up based on some expectation? or because SPWR beat tremendously.
I'll watch it Friday. If it continues its trend up I may close it out Friday close to the bell to be safe.
You don't go broke taking a profit!
Here is the chart of ESLR... A couple of solid trading ranges, which is great for us option types.
Sep - Sep trading in a $10 channel with a hump. Now a solid 2-2.40 channel. This coupled with some volitility is great for selling puts! This worked great for Accuray (ARAY) in the $5 range, then earnings were good and reduced the volitility. Also, you can see we have trading interest down at the $2 range, look at the volume. Plus some good upgrades and recommendations to finish it off.
Happy trading.
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