As highlighted previously both MFLX and HIG presented great opportunities for option traders (e.g. straddle and reversals). I personally missed them both. Instead, I set up a strangle position on ENER based on earnings (before market open) and the stimulus package. See trades below:
PUTS -
Filled Buy to Open 21 +EQIND Limit 0.55 14:40:50 02/06/09
CALLS -
Filled Buy to Open 31 +EQIBG Limit 0.35 14:29:29 02/06/09
Total principal rounded up to include trading fees and commissions is about $2,300.00. Therefore, I would have to sell the puts at a minimum of 1.10 per contract and the calls at a minimum of .75 per contract. I anticipate this trade will be very profitable as ENER is a high beta stock with a very small float and about 25% short as percentage of float. Historically, ENER has moved at least 7.00USD after earnings - that should be enough to at least break even on one of the positions. We'll see - I will post the results once I sell one of the positions.
Enjoy trading and continue to have fun!
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