Sometimes options get the best of you, and that is what is happening to me on Zillow. I bought the February put at the 140 strike, and then sold the weekly at the 139 strike. The weekly had 10 days left when I did it, and the stock price was at 146.
Well we are currently sitting at a stock price of 137.50, and I am only up 15 dollars. I was down till last Friday as the stock was moving in my direction, but the volatility in the weekly was going up so much that the short option was increasing in value faster than my long one. I hope that will change this week, as the two short options have a 300 dollar premium in each. I will be perfectly happy with a little decay in that premium and get out with a bit of profit.
So with a 8 dollar move to only make 15 so far off of having 2 spreads. Not the best out come, but hopefully that will change tomorrow, and I will be up big. I will update you on Tuesday.
