CRC California Resources Stock.

[Doyle Johnson + 14]

California Legislative bill AB 345 has been killed, at least for 2019, but just the intent of the bill did a lot of damage to CRC'S stock price. I was holding a naked short Put on 600 contracts @ $26.00 strike price expiring Friday May 17th, so I got assigned 60,000 shares yesterday, now what? My break even was $24.20 so It has a way to go to get me back even, thinking about just hanging on and see if doesn't rise back to around $30.00 over the next couple of months. Any of y'all have an idea where you think it might go?  

[Ward Smith + 6,615]

5 hours ago, Doyle Johnson said:

California Legislative bill AB 345 has been killed, at least for 2019, but just the intent of the bill did a lot of damage to CRC'S stock price. I was holding a naked short Put on 600 contracts @ $26.00 strike price expiring Friday May 17th, so I got assigned 60,000 shares yesterday, now what? My break even was $24.20 so It has a way to go to get me back even, thinking about just hanging on and see if doesn't rise back to around $30.00 over the next couple of months. Any of y'all have an idea where you think it might go?  

I'm confused. You sound like you thought the stock was going to go down? Or were you expecting it to pop because you somehow knew the bill would die? 

https://www.optionsplaybook.com/option-strategies/short-put/

[Doyle Johnson + 14]

The stock did go down on news of AB 345 passing a 1st round vote on 4-25-19. CRC opened @ $26.30 on 4-25-19 and closed @ $ 22.12 on heavy selling volume of 8,741,849 shares. Heavy selling continued for several days leading up to 1st quarter earnings report AMC on 5-2-19. A better than forecast earnings report helped for a couple of days, but it was not until after the bill was officially killed that the stock took a 9.9% leap up on 5-16-19. I had no way of knowing for sure that the bill would be killed ( after all this is California) . I consider the event to be a " Black Swan ", hoping the black swan season is over for this year. My plan is to continue holding CRC , Long , for now as I think the 2nd quarter earnings (7-31-19) will beat estimates due to higher Brent prices and holding daily production levels. Also for the 1st time today, since AB 345, I noticed a small uptick in institutional ownership, a good sign confidence is returning.