Alan answers a question posed by David, who asks:
Alan, When AVCO was trading at $238, I mistakenly sold the out-of-the-money $235 put for $6. I didn’t realize that there was a June 1st earnings report which caused the stock price to move up to $254. I’m not sure how to manage this position at this point in time.
Thanks for any help.
It’s the 2nd Wednesday of the month. Time for another original episode of Ask Alan. AA#139, “How to Manage Put Sales After a Gap-Up in Price”
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