How I made 50% return in 5 days using Robinhood Options – The GE “Long Straddle” Part 2

Last week I wrote about the GE Straddle I entered into. Today was a very interesting announcement that I didn’t expect. When I woke up this morning, Greg sent me an IM that GE was up due to a new CEO. I quickly checked the stock price and it had gone above $12.00 which put my long straddle in the money. Recall, it could either go below $10.50, or above $12.00 for me to make a profit. I checked my Robinhood account, and the call value I purchased at 39$ was now worth about $90.00. I decided to keep an eye on things for a few more hours to see how high this sucker would go. It started to retreat so I decided to pull the trigger because nobody every went broke taking a profit, right? I sold at about $80.00 and also backed out the $10.50 put for about 6$ and my position was closed. 50% return for 5 days of waiting isn’t bad! Some beer money to celebrate the blog with Greg tomorrow!  Thanks to Stephen Guilfoyle from thestreet.com for documenting this trade in his recent article. Perhaps if I’d waited until the month end it would be higher and I’ll be swimming in a sea of regret. Time will tell. . .

GE Straddle – buying a put and a call at the same time

 

 

 

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.