Closed out Puts on AIG
As anticipated AIG’s rally would not hold. AIG gave up yesterday’s gains and closed at 3.31, the lowest point of the day.
I bought AIG 4 puts @ 0.70 / contract on 9/22
I sold AIG 4 puts @ 0.85 / contract on 9/24
Gain: $254 (+21%) before commissions
I also bought GS puts on Monday (9/22), but my plan was spoiled by Bershire’s $5B stake after the close of yesterday’s markets. I am still holding the puts with a sizable amount and waiting for a good price to sell.
September 25th, 2008 at 8:36 pm
Today, the AIG 4.00 puts closed at $1.60. That would have been 128% increased if I held the puts for one more day.