Ditched the Dish

I exited my naked puts on DISH that I sold three weeks ago.  I only had two days and 2 hours to go before the put options expired, but the WSJ had an article yesterday that seems to be gaining belief.  They say no buyout is coming soon.  DISH has been sliding all day and with it down 2.25 right now to 48.83, I decided not to take the chance that the same decline will continue.  I originally sold my options for $308.50 and a few minutes ago I bought them back for $31.49.  I’m happy with that gain in three weeks.  While the deal might still work out, I have no reason to risk more than the $31.49 I spent to exit the trade. 

Now if I find out that AT&T (T) is moving back in the DISH buy direction, I’ll be ready to start selling naked puts again, but with $275+ of realized gains already in my account.  I actually believe T will make a move again, but I’d rather be on the sidelines during this move in DISH back towards the pre-rumor prices.

For those who missed my post the other day, I’m keeping my short-term sentiment posted at the top of the home page for overall market direction.  I started this week with a neutral to slightly bearish feel and with today’s half-ass attempt at a rally I might have to move more bearish soon.  If you are not reading this post on www.mytradersjournal.com you are reading it from a site that has plagiarized it.