CBEH July 7.5 Puts up 20%
Posted: 03 June 2010 07:12 AM   [ Ignore ]  
Total Posts:  49
Joined  2008-05-06

June 3 - On May 25, as the markets were reeling, we suggested selling puts on China Integrated (Nasdaq:CBEH), which is a strategy we like when markets are selling off. The general thesis is to sell puts on stocks you want to own at lower levels. It is a way to get paid to purchase a stock you want to own anyway. If the stock doesn’t hit a level sufficient to be put to you, you pocket the premium and it turns into a nice short-term trade (assuming the expiration date on the stock isn’t too far down the road).

The July 7.5’s we suggested about a week ago are up 20% this morning since the day we suggested them.

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