One of our trade group members brought up this stock. DBC has had a steady uptrend since September 2007. It has currently reached it's all-time high at 40 with a little consolidation over the last few days. When we looked it last night the credit was worth about $0.65.
However Mojo from insanemoney.com suggested we place a fill order at $0.80 or 0.85 to see if it fills as this may retrace slightly to test the moving averages as it continues to make it's way upward. As he predicted, that's what happened later on this morning, so I got filled as below....
SOLD JUN 38 PUT @ $0.85 credit
Set stop loss for twice my credit= $1.70
My risk is $6.08 margin held. I will exit at 80% of value of credit (around $0.17 debit to exit)
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