PENN - update

Okay, I'm a bit behind in the blog here, and there's been a bit of action due to the October Expiration which was Friday 10/16/09. So first is the PENN trade update, here's the chart:

Two days before expiration, 10/14, I bought the October 25 Put Option that I initially sold back on 9/18/09. I sold it for $0.45 and bought it back for $0.05. So, I made a profit of $0.40. I highlighted it on the chart with the blue box.

Two days after buying back that sold option (not highlighted), I then sold a November 25 Put Option for $0.95. I did this in case the stock starts going against me, or if we just kinda drift sideways a bit.

If the stock goes against me, then that option that I sold will go down in value. If the stock just drifts sideways, then Theta will start eroding it's value.

That's it for PENN