Tuesday, December 5, 2006
SSCC - Smurfit Stone Container
We bought the Smurfit Stone Dec10 Calls earlier in the afternoon and booked a quick 20% profit. What I liked about the December 10 calls was that they were trading at intrinsic value. With the stock trading at $11.15 when I got in, I bought the calls for $1.15! That made good sense to me... 10 + 1.15 = $11.15, which is why I didn't chase after the Ceradyne takeover rumor where the Cerdayne in the money December 55 calls were trading at more than $1 above intrinsic value. ah-so. I sold the SSCC calls at $1.40.