Dec 26 2007
Diana Shipping (DSX) Sales Again (pun intended)
DSX was trading at 29.17 when I bought my December 30 naked puts back last week. It finished the day lower on that Friday and then rebounded on Monday. Today it’s down again and I watched it for most of the morning. This time I was focusing in on the 25 strike instead of the 30, again to give me a good cushion like I thought I was doing for the December expiry.
While DSX was trading at 28.87 this morning my limit order hit and I sold five February 25 naked puts and received $536.25 after commissions. I started with an order at 1.25 and ended up lowering it all of the way down to 1.10 before it hit. I actually think DSX will recover and be above 30 by February, but I was wrong about it for December (although I finished the trade with a profit) and decided to [...]
Original post by Alex Fotopoulos