For those that follow my trading you know that I do what I term a “to fade” trade frequently. These trades usually stem from out-sized moves up. I want to capture some of the expected profit taking.
I did the following trade in $CERN on 9/27:
- Short stock at a $55 Trigger (these don’t often fill this well, was a lucky entry)
- Long the October 55 Calls for $.75 debit
- This is considered a Synthetic Put
I want to point out here that this is just a trade. I actually like the prospects for this company long-term so want to be clear on that.
Here are a few messages from @StockTwits on 9/27:
For now the short stock trade is working so I don’t need to do anything. The long Calls are for October expiration so I have over 2 more week to let this trade play out.