Buying Puts in Southern Co. For a Nice Gain
In tonight’s video, we’ll take a look at some of our Stock Volatility Box entries that presented themselves on the scans.
In particular, we’ll take a look at Southern Co (SO), which hit our scan and alerted us at 8:31 AM PST.
That gave us our opportunity to short SO, with the underlying trading closer to $64.20 and ATM put options trading for $0.53/contract.
SO then began to reverse, and hit the first target for a 24.5% gain in the options. By the end of the day, the same contract was trading for $0.73/contract, for a total ~35%+ gain in the options.
Similarly, we take a look at DCP and RETA as well, using our Stock Volatility Box Tool.