Sell VFC Put for 80% Gain
Sell to close the Nov. 18, 2016 put on VF Corporation (VFC) with a strike price of $62.50 at $4.40 or higher for an 80% gain. Symbol (VFC161118P62.5)
When we bought these puts less than 3 weeks ago we expected to hold them for a longer period of time. However the stock dropped immediately and the put position is now up 80%, a gain that is hard to resist not booking.
The stock has been downgraded by two brokerage firms in the past week, both noting a promotional environment for the North Face and struggles with the Vans and Timberland brands.
Although we are taking this gain, I do expect the stock to drop lower over before the November expiration. Some option holders may prefer to hold the put but keep a mental stop of $4.40.