Procter and Gamble (PG) partial unwind

This is a partial follow up of last week's trade where I bought PG strangles. Click here to see that entry.

Procter & Gamble PG earnings did come out and the stock got hit.  It's down 4.6% to 55.45 as I write this.   Though I don't think the earnings did anything to hurt the long term prospects of PG.  Missing sales estimates did spook some analysts and investors into selling.  The strangles I bought last week have served their purpose and while the calls are basically worthless I did managed to sell out 20% of the puts for $0.50.  I'm offering out another 50% of the position at $1.00 just in case but will probably try to sell more of the position today as I don't want to get greedy. The point of the trade was to buy cheap volatility on PG into earnings announcement during a period where large stocks have been moving big on earnings announcements; I was not trying to make a new long term bet on PG. 

I like Procter & Gamble, its management and its prospects.  I do however, think that it's current price earnings multiple of 20 is not cheap and can wait to buy more on a bigger dips than this.  Depending on other factors, I would be looking to buy more stock between 50 and 55.

I did the following PG trades today:
Sold May 55 Puts at $0.50 to close (20 % of position)
Sold Jan2007 50 strike Puts at $0.95 to open

Disclosure:
I own a 1/3 position in PG
I am short Jan2007 50 strike puts on PG
I am long May 60 Calls on PG - with open sell order
I am long May 55 Puts on PG - with open sell order

This is not meant as investment advice.  This is a log of some of my personal trades and does not represent all my trades or investments.  I am not giving investment advice that would be appropriate for anyone's personal investment portfolio.  You should seek advice from an investment professional before you invest.