CLOSING the $PCLN OptionsAction trade from 4/27/2012 - mike

5/18/2012 - Options action show tonight revisits this trade, here is the video tonights clip. Trade worked out, this put spread for $18 is now worth $45 out of a possible max profit of $50. Mike mentions to take off at least some of it and roll it down.. does not get specific on any new strikes which would have been helpful to viewers. i will just close this spread out all the way on the spreadsheet for a good win.

google docs spreadsheet with all of mikes trades: mikes trades



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4-27/2012 - mike has another trade on priceline tonight. totally not mentioning the other one he had a month ago that is still hanging out there. here is video clip video clip

Buy the Jun 750/700 put spread for $18 ($1800 per one lot)

mike makes an good argument for this..mentioning that it could be either as a hedge against stock or outright bearish thesis. point to note is his comment that "if stock pulls back, you could monetize this spread quickly". i read that as take profits quickly if stock pulls back. although not directly mentioned as an earnings play , this spread will include earnings on may 9th if held to opex. my bigest beef is the price tag.. $1800 is no joke. If looking for some downside hedge on earnings i would look at a put fly or put calender using the weeklies when they come on the board for earnings week.. if you want to go to may opex for the sell in may go away theory, then id look to something cheaper as well. Maybe the May 750/725/700 put fly.. might be able to get that for about $2.75... i would be more inclined to do something like that than pay $1800 to make $3200 at june OPEX..which didnt seem like mikes intent anyway