First of all let me just say I’ve been wrong on POT on every recommendation. But, I think the time has come for a significant drop. As i said earlier, I bought some deep out of the money puts, June 160’s to be exact. Before you comment, let me just say I do not intend to exercise them, I intend to trade them. All I need is another 10 point drop for my puts to nearly double in value, and that’s what I’m banking on.
Looking at the chart below, the stock (short-term) is making lower highs and higher lows. The stock also broke through the 30 day moving average, a key signal for me. All signals point lower, but you never know with POT.
That the strike I was looking at as well. I’ll buy puts if it turns down at the trend line.