CLOSING THE $YHOO OptionsAction trade #2 - scott

20 oct - just like i always say, keep selling those front month short calls and bring down that cost basis.. might have happened on this trade after the july call expired but we will never know since the trade was not updated on-air or twitter.. so into the books goes another full loss with stock closing under 16 at opex.

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11oct - been a long time since this trade was on air, if you took no action and are still holding the Oct call.. its going for about .15 with a week to go till opex with stock near 15.90.  so about 80% paper loss. you could have sold front month calls along the way and reduced your cost basis some.

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21 May - scott has another trade for YHOO. had a YHOO trade on 4/9 as well. here is the video clip yhoo trade



Buy the July/Oct 16 call calender (sell the July16/Buy the Oct16) for .65

The alternative i would do to this is to start this as a JUNE/Oct call calender.. after hours quotes still show .35 left in the June16 call. selling the June call first you further reduce the cost of this calender, if it closes below 16 at June opex, then sell the July 16 call, then the aug,sep, not saying scotts trade will not work but i would want to get that front month premium in my pocket first to take advantage of the faster time decay.

google docs spreadsheet of scotts trades: scotts trades