I decided to close out my 4 Oct 20 ’12 BBVA Puts @ .30 this morning. I could have closed at .25 yesterday saving $20 but was hoping for another up day. With BBVA down 8% today I decided to close out with a small gain of $40 not counting commissions and look for a better entry point.
I believe the market is due for a correction and the banks have been falling more heavily when the rest of the market drops. I still believe the 2nd largest bank in Spain with a lot of geographic diversification will survive the Spain and Euro debt crisis and could be a great long-term investment. I’m willing to build up to a 1000 share position but I want to keep averaging in. I’ve updated this trade on my options tab as well.