Getting Ugly For Me On ETN
ETN was down more than $10 this morning. That’s over 13% down from yesterday’s close. I planned to wait until after Friday’s options expiration to sell calls on it, but decided I had to cut my losses sooner rather than delay it.
While Eaton (ETN) was trading at $69.28, I sold one ETN July 70 call (ETNGN) and received $159.25 after commissions. ETN came off its low of $68.75 soon after I made my trade. I could’ve made another $100+ if I waited 15-30 minutes.
I originally sold a July 90 naked put (ETNSR) and received $219.25, so this gives me $378.50 to cut into the $2000 I’ll lose on the stock if ETN closes above $70 when options expire on Friday, three days from now. Losing more than $1600 is pretty bad, but I’d rather have that loss wrapped up than have my losses get bigger. If ETN does stay below $70 at the end of Friday, I’ll […]
Original post by Alex Fotopoulos