PEIX Update

So much for continued bullishness in the ethanol stocks. According to MarketWatch, the expected news from the Prez was baked into the stock price.

PEIX is currently trading down $1.08 at 16.77. The 20/17.5 Put spread is currently trading for 2.00 putting the position down about 38%. The IV levels have actually moved higher from yesterday which is not for a net credit seller who wants premium degradation.

What's our exit strategy? I'll look for the stock to rebound a little today if it does at all and then might close out the 20 Put leg for a loss and hope that the stock continues to move lower.

This is a broken trade and should be treated as such at this point.

Any ideas on PEIX's sad move today, if so grab a vine.