The Money Tree

Safely Generating Income in Retirement

GTY – New Trade

Posted by mounddweller on March 14, 2011

Fellow Traders,

I executed the trade I referenced earlier on GTY.   This morning I STO 5 MAR $22.50 puts at $0.55.  My ROIC is 2.44% with only 5 DTE.  If you missed my earlier post with my rationale for this trade you can find it here: https://troysmoneytree.wordpress.com/2011/03/12/nok-new-cc-trade/.  Don’t let the title fool you.  The post starts out talking about my NOK trade but further down you’ll find my thoughts on GTY.

Regards,

Troy

PS.  I held off pulling the trigger on the LO trade.  After giving it a second thought I decided the premium was too high.  That tells me somebody knows something I don’t.  Like my grandpa always used to say…”if something looks too good to be true, it is!”

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2 Responses to “GTY – New Trade”

  1. John said

    I sold the LO $70 put contracts expiring this Friday. I think time decay is working nicely. There are no earnings announcements. Do you think the FDa is going to make some announcement before close on Friday?

  2. mounddweller said

    John,

    Here is what I’m basing my decision on:

    “The FDA advisers are set to hold a public meeting on Thursday and Friday to discuss their findings. In previously released chapters, advisers said there was a lack of evidence to show menthol cigarettes expose smokers to higher risk of disease but that the flavoring might make cigarettes more addictive. [ID:nN01121574]

    The complete report is due to go to the FDA by March 23. The FDA is not bound by the panel’s advice and has no deadline to take any action.

    Lorillard has filed a lawsuit to prevent the FDA from considering the panel’s report in making any final decision on the cigarettes. [ID:nN25138916]”

    This quote came from an article on Reuters. Here’s the linkL http://www.reuters.com/article/2011/03/14/tobacco-menthol-idUSN1416701920110314?feedType=RSS&feedName=companyNews&rpc=43.

    My thoughts are that if information is leaked out of these meetings on Thursday and Friday it may cause some volatility in LO before options expire Friday afternoon.

    Hope this helps…

    Regards,
    Troy

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