Friday, January 16, 2009

ALK followup trade

Alaska Air hit my target projection of $30 twice! The first time was last week then price reversed. Today, it moved $1.78 to close at $29.78. Unfortunately for me, I was out of my calendar on Wednesday for a profit of $.44 on $1.43 risk. If I stayed in until today then my profit could have been $1.10. But a win is a win.
One thing I noticed is the earning is due out the last week of Jan which should have increased the Feb IV. However, IV has stayed very neutral this month. One of the reasons I choose this trade was using the IV increase as a way to profit on the trade.

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