Today we sold our MGM Mirage (NYSE: MGM) February 2010 $11 call options at a gain of 55% within 8 trading days. This is our first trade close of the new year and we are happy to take a profit. This trade has worked out perfectly for us and exactly as planned. We had purchased the call options at a premium of $55 per contract and have sold it at a premium of $85 per contract today.
We are happy to make a gain of course. But we are also happy because we followed through with our overall trading discipline exactly on this trade. We got into the trade after seeing huge trading volume on the stock. We anticipated the reversal of fortunes (at least short-term) for MGM and decided to make the short term call option play. Now that the stock price has gone up modestly, the value of our call options have also appreciated. So, we did not wait even though there is still some time before the options expire. Tomorrow the momentum may take the stock price higher and perhaps we have left some money at the table. But the important thing is we have booked our profits.
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Sphere: Related ContentTags: call options, calls, mgm, premium
