Option Purchase and Sell of LESSD

This morning we purchased the July 2006 $57.50 put option on Lehman Brothers Holdings Inc. (LEH) for $1.25. So as to not repeat this incident of buying an inflated market order at market opening, a limit order of $1.10 was submitted just seconds prior to the bell. Due to a network delay, the order timed out, and the ask price rose 13% to $1.25. Perhaps the most costly network delay we have ever encountered. After purchasing the options at $1.25, we set a limit order to sell at $1.85. This limit was hit later in the day, and we cashed out with a 48% profit in 1 day.

The story continues in the next entry (probably above this one.)

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