FFIV is pulling back a bit from post earrings high of $106+. I think this is due to profit taking. It is unlikely to go below $100 in near term. So I set up a spread of FFIV put, long 100, short 97.5, cost $2.2, potential profit $0.30/pair of spread, expiring in 3 days. I am short FFIV 95 May option. If FFIV pulls back further, my May 95 short options will fall as well. So this acts as a sort of hedging.
About admin
Richard Cheng, M.D., Ph.D., is an avid Wall Street investor with 20+ years of investing experience. He is specially adept at observing the world to find the patterns and then design strategies to win his battle. Most, if not all, happenings in the world, follow certain patterns. These patterns may be complex, multi-factorial, not so intuitive at the first glance, or even may appear chaotic. However, even chaos has its own patterns. If you pay attention and be patient, you'll find them and then you will gain an upper hand in your battle. Using this blog space, he documents his trades and his thoughts as they happen. He uses this blog as a a notebook to help him better refine his strategies. Hopefully this will help you as well. Good luck in your trading.
