Buy 1 BBH 160 December Put @ $0.54

Discussion in 'Options' started by forex-forex, Dec 5, 2007.

  1. Bought 1 BBH 160 December Put @ $0.54. DNA halted and 38% of BBH's holdings are DNA, could be interesting.
  2. Looks like todays volume was only 16 and Last Trade: 0.54 and Trade Time: 3:34PM ET belong to me. :)

    Yahoo Finance - BBH Dec 160 Puts, December 05, 2007
  3. can you do me a favor?

    next time you decide to buy an option, ANY option, pm me with the details, so i can be the writer.
  4. Why do you need a PM? I posted in real time to ET with the details and PM'ing anyone will take up too much of my time, that's why I have EliteTrader PM and Email turned off.

    Yahoo Finance - BBH Dec 160 Puts, December 06, 2007

    Sold @ $0.34
    Loss $22.00
  5. LIke beating your head against a wall isn't..... You never want to be happy being the only volume on a day in an option. That illiquidity will kill you when you want to get out.

    Besides, 1 option? The price was probably double when commissions and fees were added in.
  6. Coach....Commissions were only $2.00 total. I thought BBH would take a bit of a fall because of DNA but I was wrong and decided to sell today. "illiquidity" wasn't a problem in getting out, my market order got filled instantly at $0.34 even though the bid/ask was $0.30/$0.40.

    I like how that Yahoo finance screen shot contains data from my closing trade, It took about 5 minutes to update from my IB account to Yahoo finance.
    • Last Trade: 0.34
    • Trade Time: 12:43PM ET
    • Change: 0.20 (37.04%)
    • Prev Close: 0.54
    • Open: 0.34
    • Volume: 1
  7. Nanook


    It depends: Sometimes it will, sometimes it won't. Nothing wrong with being the only buyer or seller in town.
    If you see a setup (or a certain option strategy that fits the current technicals/fundamentals/news/etc.) then you can say "I am the market"!
    Contrarian: One who takes a contrary view or action, especially an investor who makes decisions that contradict prevailing wisdom, as in buying securities that are unpopular at the time.
  8. I would like comments on my original reason for placing this trade, which I think were valid.

    • DNA is halted on bad news, so can't buy puts.
    • BBH's holdings are 38% DNA, and of course BBH is still trading.
    • Buy BBH puts.
  9. Div_Arb


    In my opinion, these were good reasons for placing this trade. It's not like you swung for the fence at one contract, either. It seems like all of these other folks want to lambaste you, but I feel your thesis, sell discipline, and money management were sound on this trade. With this bad news and DNA trading at a nice premium, luck wasn't on your side and DNA didn't continue to the downside after the halt. You win some and loose some, and that's just part of the game.

  10. Thanks for the feedback Div_Arb with your post above.

    These puts have a bid of $1.35. I will have to rethink my exit plan, I exited one leg of my DIA Iron Condor early also, but then hindsight is always 20/20.
    #10     Dec 17, 2007