This looks too good to be true - or is it? Technical perfect with : 1. 5 waves correction 2. 62 % retraced from low to high this year 3. a double bottom with May low
So I got aggressive and sold a bull put spread for premium two weeks expires.
Sold 45 ( 4500 shares) contracts of American PUT strike 15.50 ......for 0.24 bought 14.50...........-0.07 for profit premium paid 0.17 ($765)
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After it had been looking good, sitting in profit by the 11 OCT and well out of the money - there was a big down day yesterday of -4.0 % ( 0.60c) at one point in the day. As the strike price is 15.50 and it got as low as 15.85 in trading through the day I figured the risk of being exercised was too large by Thursday, and I got out of the short leg ( sold position) for a buy back of 0.06 c...after brokerage it was about breakeven. As there is still 4 more credit spread positions open that look to finish in the BLACK I am not worried by 15 October.
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In hinsight - I should not of got 'bounced' out of a good trade due to one scary down day !