Today I decided to close out a put I had sold last October. TEVA has been on a huge run the last couple of months, up over 25%. I decided to use this quick surge to close out my option cheaply and free up some cash for a down payment on my rental coming up.
I probably would have rode out this put had I not needed the extra cash this month. I love the generics business and TEVA is poised for great growth ahead. Fundamentally, they were undervalued for a while but they are now catching up. They also recent announced a 15% dividend increase.
The Trade:
I mentioned the original trade here.
Today I Bought-To-Close 1 TEVA Jun 21 '14 $37.50 Put @ .19
Since I originally sold the put for 3.00, I profited $281 before commissions.
I currently have 10 open options positions and a total options profit of $118 for 2014.
My options page has been updated accordingly.
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