Buying To Close

This is a Post from the Symbol Surfing Blog from Fri, Jul 27, 2018.


Today I bought the PCG Jan 18 2019 50.0 Put @ $7.15 to close out the position.

This was a long 7 month trade.

Interestingly enough, the stock price today was $44.70.

The stock price did not move much since Fri, Jan 5, 2018 when it was at $44.29.

I sold the option at $8 and bought it at $7.15.

$8 - $7.15 = $0.85

$0.85 / $8 = 10.625%

The return on the option trade was a little over 10%.

If I had purchased the stock, the return would have been about 1%.

$44.70 - $44.29 = $0.41

$0.41 / $44.29 = 1% plus a couple of dividend payments. Oh wait, PCG suspended it's dividend.

So the stock price return would have been 1%.

This is a situation where selling a put performed better than buying the stock.

What do you think about "Buying To Close"?

Let me know in the comments section!

If you think your friends would like this, please share it. Thanks!


Hello! My name is Tom Adishian and I am the creator and developer of Symbol Surfing. I use this site on a daily basis as a time-saving resource to identify trading and investing ideas. If you have a comment, question or suggestion, contact me.

Fri, Jul 27, 2018 PCG @ $43.48

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