Ah, yes! The benefits of a strategy can be so helpful. In the last post I made, I indicated my interest in acquiring a Put position on JBL. In that post I detailed what my strategy was, and what my reasoning was for making the order. One of those reasons, was that I recognized that a similar set up occurred months ago.
It just so happens that today was a bullish day in the markets and as a result of careful research and careful calculation, I avoided getting involved in a stock on the wrong side of the market. Now there is potential that tomorrow could go bad for JBL, but the point of this post is to illustrate the benefits of setting such orders in place.
Now that I still have that capital available, and the markets have made such interesting movements in a new direction, I am going to apply the same strategy to a different stock. This time it will be FPL.
I will be making a BTO Call order for FPL. Using the same equation as before, I have determined that my next ITM option pick will be about 2.85 per contract share when FPL reaches 55.49. That is my opinion, you can take it or leave it.
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