Today I closed my $60 put strike Home Depot Stock naked puts that will expire tomorrow. This is one of my trades from the Hurricane Sandy strategy article.
Despite it being just 1 day to November options expiry, the market direction remains very poor and it is never worthwhile to hold onto a trade when it can be closed for 4 cents after earning 82 cents in the present market environment.
The chance of Home Depot Stock closing below $60.00 is slim and I know many investors would not close, but after earning $400 and closing for $20 before commissions, it always makes sense to me to take risk off the table when it is present.
If the market environment was better I would have held these Home Depot Stock naked puts and let them expire but should politicians make a serious blunder tomorrow or the Middle East explode, it is never surprising to see the market plunge 300 or more points and move Home Depot Stock down to $59.50.
The trade is now closed. You can review the Home Depot Stock trade through this link.