Update: Closing BBI Puts Position

•  Sell BBI Jan ‘08 7.50 Puts around 3.40

After eight trading days, I recommend closing your position of BBI puts at $3.40 to lock in a 36% gain. I still believe BBI is in major trouble. Therefore, if your risk tolerance permits, feel free to ride your puts longer. Personally, after watching the stock’s price action since their earnings announcement on November 1st, I would rather lock in my gains and trade the puts on daily pops and drops.

If you are raising cash, do not rush to jump back in this schizophrenic market. Better to see whether the bulls or bears will control Q1 …