I also decided to sell half of my SSO December 33 put options for $155 per contract for a gain of around 29%. This was again a move to capitalize on the sudden move down of the stock market seen this morning. The market was down last week and, as discussed in my notes from the weekend, I did expect the market to trend down this week also. But I did not expect that to happen on Monday trading itself.
The gains were there to be taken and so I decided to take it on half of them. Remember that I was not happy with my buy-in price of $120 a contract in the first place. I think I paid at least 10% more than what I should have. If I had got the right purchase price, I would be selling now at about a gain of around 40% which would have been the desired level. But it was not meant to be.
I am leaving the other half of the holding to potentially pick up some additional gains through the week. If the downtrend continues for a couple of more days, then that can be substantial gains as well.
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