PCLN - Kirby

PCLN opened a bit lower yesterday at 656.32, and immediately punched into the kirby above 660. This time price action worked like a charm as PCLN never looked back closing at 673.50 + 14.09. let's take a look at how the 3 option trades performed.

 So all three performed well with the straigth call leading the pack. The velocity of the move is what caused the underperformance of each of the spreads. If that contines those effects will intensify, however any lessening of the velocity, and the passage of time will help the call spreads.


In the interests of full disclosure, my intention was to enter the 3rd trade, the ratio. When I saw PCLN trading below 660 just after the open I thought great, but AAPL grabbed my attention and when I looked back at PCLN it was 664... it seemed like the blink of an eye (the power of the Kirby). PCLN never fell back toward 660, and I DID NOT enter any of these trades, though I obviously wish I did, especially still have my put butterfly on.

If you'd like to follow along, let me know and I will continue to post results of these trades and how I wouls have traded them. I think one can learn a lot by watching each trade wind its way toward either expiration or close out.



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