Unsuprisingly, the sub-primes had a major role in the fate of the software today. The LEND calls sold yesterday initially did well as the bad credit lender dropped almost 20% on a downgrade. But then the software made the worst trade I have seen thusfar, it sold 70 FMT March 10 Calls for .10 each, the way the code is currently written this trade can not make more than $350. However, this trade could potentially lose alot of money and in fact it did, very rapidly. By the close the position was down almost $1.4k. And how could I forget CVTX, it gapped down and closed -24%. The software was short 50 puts there and the position was closed out at a surprisingly small loss while the NEW Puts were up enough to be sold for a larger profit.
Closing Liquidation Value: $122,528 -$1,390
No Worries, the sub-primes have no reason to rally here, but I admit I am very vulnerable to a quick move up in that sector. I know FMT is down a bit after hours and they all closed ugly so we'll see. Lets just say I won't lose any sleep over it tonight.
Closing Liquidation Value: $122,528 -$1,390
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