I decided to cut and run with my profits in my Nymex (NMX) call options. Take a look at the two images below to see the difference in prices from April to July in Jan 08 130 Calls. I no longer want to own long term based on takeover rumors that are on and then off. I may start to play the dips and grab more calls if the stock falls once again. Buying puts near the peak can be a play although risk is higher since a buy-out could actually happen.
The Jan 08 130 calls have been swinging between $10.50 and $20.50 over the past couple of months. Not a bad scalp or swing trade without capital needed.
Today’s Opening Prices:
A 52% gain in the Jan 08 130 option premium (I did buy the 130 at $13.50 and not the 135)! However, the stock only gained 6% in actual price as you can see ont he screenshots.
Screenshot from April:
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