This is definitely beyond my expectations to say the least. The market was up at early trading. But around 11:30 am, the market began to slip and Newmount Mining actually went down to around $43.50 a share. This made my put option in the money and actually go up all the way t0 $224 a contract.
I was not expecting to sell it that soon. But when you have a 65% gain within 4 hours of your trade, you cannot sit around. So, I sold the complete holding for a gain of $89 a contract equating to over 65% gain. The put option premium very soon went up to $227 a contract, but that is OK. Once I sell something I do not look back, especially if I have made a gain. No “seller’s remorse” for me.
This is the power of options: leverage. A 3.5% drop in the stock price gives me over 65% gain in my put option.
The intra-day chart for NEM is below:
