No. of Recommendations: 2
There are other things to account for when trading options. For example, those Jun 450s only traded 20 contracts today. If someone wanted to sell 30 of them, they very likely would have had to trim the ask down by some amount.
Furthermore, if you look at the trading today of the Jun 450s, you will see the following trades took place throughout the day:
5 $3.85
4 $4.60
4 $4.93
2 $5.00
4 $5.15
1 $4.03
Just because the ask was $5.20 doesn't mean any traded at that price, and indeed none traded at that price. And in fact, when the ask was $5.20, that trade of 3 contracts for $5.15 took place. And the highest bid of good size that I can see was $4.90, so someone selling 30 contracts would definitely have gotten at least $4.90, possible $4.95 if that bidder really wanted them. Call it $4.95, that would be 3.60 to 4.95, or a 37.5% gain. Excellent gain for a single day!
An accurate analysis of today's trades! 14 of those contracts were me selling (not the 4.03 or the 3.85). The other 14 contracts (trades at 4.60,4.93,5.0 and 5.15) averaged about $4.908 on 3.60 cost. I tried to repurchase a few in the 3's later in the day but no fills. I was also offering to purchase more at $3.35 all day long but that order was placed before the market opened.
According to Fidelity I realized a whopping $1,812.83 after expenses and I still have the other 16 contracts so we'll see...
I had tried to buy more than 30 contracts but was stingy about price. Maybe we will get another shot
