RE:Shorting Against the Box... Loves , yesterdays 5% SP rise loked really interesting to me . Feb 11 puts are now priced at around 50 cents. That to me seems a good risk / reward situation and with options expiring on Feb 21, gives us an ideal window to profit from price vaction around Feb 15th.
I have already purchased some of these and have stink bids in to catch more if the SP rises over the next two weeks.
Lets say Im wrong , and bought prematurely , and SP rises to $12 and then takes another 30% haircut when results are announced. Thats a SP of $8 and my puts become worth $3........ not a bad return on 50 centds..
POG could move in either direction. and management might really surprise us all with outstanding Q4 results , but really , what is more likely???