Thursday, September 17, 2009

Out of Oil -- A Day Early

The current market feels pretty frothy,  USO is at ~37.5 and the strike price of my short options is 36, and I will not have internet access on Friday--so I decided to try and exit out of the position.   The maximum profit was a net of 36.  I put in a combo order at 35.96 that did not execute for around 15 minutes.   I resubmitted the order at 35.94 and it filled almost immediately.   I created this position with a 34.92 net, so I gave up 6/108 or  5% of the profit that I would have gotten if held to expiration--and if USO stays above 36.   Painful, but better safe than sorry. 

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