Today around 10 am I sold to open 1 Apr 55 PCLN Put for $.70 and received $67.05 after commisions. I'm actually bullish on Priceline but decided to sell a put 30% OTM for safety in this market as it closed today at 78.10 . PCLN has shown good technical strength lately and bounced off its 50% fibonacci retracement yesterday when it closed down about 7%. If the market continues to rally I may even close this early and take the profits.
For this trade the margin requirement is $600 and the ROM (Return on Margin) (70/600) is 11.7% and there are 37 days til expiration.
Let's hope the bulls don't abandon their positions for the weekend tomorrow, that could get ugly.
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