ADM reported today.
music selection: “I Want It All” — Queen
ADM’s first quarter profit jumped 47%. So the stock should be soaring, right? Nope. They missed “estimates” and the stock is down almost 9% on the day. That puts me down about 450 dollars on the two written puts I have outstanding. The market is really fickle sometimes. That’s the beauty of options investing though. You get a margin of safety from your options premiums. If I had bought the underlying, I’d be down closer to 650 dollars. And I can still write covered calls to recover from the oops once shares are assigned in early June. It’s a marathon and not a sprint.
Devour your prey raptors!