Close the American Airlines Options for a 922% Gain

aplus's picture

On October 4th we sold the Feb $24 Puts for $1.77 and bought the same expiration $27 Calls for $2.00 for a net cost of $0.23, today these options have a net value of $2.58 and we are closing the trade by purchasing the short $24 Puts for $0.52 and selling the Calls for $3.10. AAL has dropped over $1.50 over the past few sessions, and is not right on the 50 day moving average. We're protecting these gains and moving on even though there's plenty of time before expiration.

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