24 contracts traded on Friday. 52 open contracts – low liq. true. MMs will sell it to me and hedge by selling short. That’s why u often see a rally next time when puts are covered.

I have a small trading account, so I use at-the-money options as a proxy to trading stock (higher delta). To me, this trade was too juicy to pass. Might go to $320 easy. However, most likely I will dump them at the first sharp downward move in stock (saving on theta). Out-of-money options are for hedging or speculation.

Fortunately I got 100 shares of MNK at $1.95 and banked an 89% profit. Nice to make money for a change. Regarding official trades vs unofficial trades. I wish they were all unofficial or as Randy calls them “Trade Ideas” R says the official trades take longer to put together and post. The only other difference I can see is the official trades have price targets that have been backed off a small amount from some particular resistance or support level. I have seen no difference in the likelyhood of a profitable outcome when comparing official trades to unofficial “trade ideas” Additionally, how many times have you seen a pick get stopped out and then turn around and do what it was initially predicted to do?

The DPZ $370 June put has a bid of $18.00 and an ask of $22.00 which means the mid price is $20.00. If you bought one option contract you would be investing about $2,000. The open interest for that put is currently zero meaning there have been no $370 June contracts traded. Even if you could buy one, meaning find someone to take the other side of the trade, who would you sell it to when you wanted to sell it? Low volume and low open interest is a no no when trading options. OTOH, SPY, QQQ, JPM, MSFT, INTC, or any other really large ETF’s or company will have tight bid/ask spreads and daily volume in the hundreds and and open interest sometimes in the thousands on option contracts who’s strike prices are close to the price of the underlying stock price. HTH Bottom line, DPZ is a good example of a company where options should be avoided.

It depends. How much more pizza can they sell even if we stay on a lockdown? I think this run is over and it’s time to take profits. We’ll see.

I am new to puts as a shorting strategy. Can I ask a few questions on your strategy on the put price and time frame? Seems that put is already in the money. So you are thinking by expiration DPZ will be below 270 minus the put cost? I would not have thought to buy one already in the money.

It has traded differently. Hard to say when it will start coming down? As we reopen or after next earnings?