About as frustrating as the election has been so far is today’s action in [[CLF]]. Currently up over 9 points & 5%, after missing with earnings. And it’s not like they missed by a little…analysts were expecting an EPS of $1, and they reported $0.32! Revenues rose, but net profits fell by half from last year! Shares fell in pre-market, as much as 5%…
I had a strangle in CLF from yesterday, with 160. Calls and 155. Puts…in light of the pre-market action and the above reported earnings, I blew out all the calls at the open. The stock got bid up nicely yesterday, so profits were booked on those. The frustrating part is obviously that instead of dropping, as expected, the stock is exploding higher, leaving my puts essentially worthless and making the sale of the calls look like a schmoe move.
Fortunately, the profits from the calls almost guarantee a breakeven at worst, so overall, it could’ve been worse. Plus, the names from yesterday are still working, including [[CHK]], [[DO]], [[DVN]], [[EOG]]. Enjoying some gains in [[STP]] calls as well.
But I just had to vent/whine about the retarded CLF action. Perhaps this ‘election’ is getting to me…If you enjoy the content at iBankCoin, please follow us on Twitter