(JCP) JCPennies Into Dollars For Put Buyers

jcp516

I covered JCP in my market update video last night. In that video, which you can find on this blog, I stated very clearly that I thought JCP would rip to $30 and at that point buying the $27 and/or $28 puts would be a nice high risk trade. I also thought the stock would trade under $27 today afterwards. Look at the chart above. The stock hit just over $30 early in the session then fell a few hours later to under $27 for a low of $26.75. How perfect was that move? It was almost as if I was doing the play by play for the stock the night before. Luck? Skill? Who cares, all that matters is making money in this market. Had you taken a chance just on the JCP puts like I said last night here is the potential profit:

When JCP hit $30.02 the $27 puts were at $.04, the $28 puts were at $.15.
When JCP hit $26.75 the $27 puts were at $.75, the $28 puts were at $1.45.

If you traded just the $27 puts from low when she hit $30 to the highs at $26.75 your looking at $40 into $750
If you traded just the $28 puts from low when she hit $30 to the highs at $27.75 your looking at $150 into $1,450.

As I said in the video as well, just a little dab will do. No need to back up the truck. Perhaps you will tune into my next market video and if you watched last nights video you'll know that JCP puts weren't my only potential winning option trade.

Profile photo of uranium-pinto-beansKnown to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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