Closing Trade : DECK

Stock / Symbol: Deckers / DECK

Option Strategy: [private_monthly]bull put spread[/private_monthly]
Trade entry date: Dec 20
Price at trade entry: $90.86
Price at this post: $83.98

Reasoning: This trade has gone against us, and fast. We're going to close at the trade here for a relatively small loss now, to protect against a big loss should DECK finish under $77.50 by trade's end.

Trade Details:[private_monthly]

BTC -5 DECK Jan12 77.5 puts
STC 5 DECK Jan12 75 puts
for a net debit of $0.65 per contract (GTC, limit order)

Max Risk: $1125
Max Reward: $125 or 11% by Jan 20
Profit Range: $77.5 +
Realized Profit / Loss upon fill: ($200) pre-commission

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  1. Gordon Slater says:

    Looks like maybe we closed a little too soon; but better to be safe than sorry. I appreciate your conservative philosophy.

  2. Gordon,
    Yes, now it does definitely look like we closed it too early. I didn’t like that it was trading under the low of $84.78 that it set on Dec 15 on the news of the analyst downgrade. We’ll keep an eye on it and maybe jump back in.


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