My only question would be how far under the price of the take is acceptable for the price of the put? I know the difference between the Camacho and CAO is only $.50 but we should draw a line somewhere in my opinion.
How about five percent. That would make it around $0.75 max for the Camacho. I don't think that's unreasonable on a $15 stick and I would be comfortable going a little more. If we make it to tight it will be harder to find trades.
If every trade was done this way that $15 cigar could trade
down to a $10 cigar! I think Gary nailed it when he said it comes down to integrity.
Lots of good questions and good discussion! I like it!
T: Tatuaje Petite Caz Reserva - $4.04
P: Don Pepin Firecracker (2guys smoke shop) - $3.99
T: Camacho Liberty 2007 w/Coffin - $14.50 (just went this Greg's Avg, but still open to discussion)
P: CAO Odyssey w/ Coffin - $14.00
T: Johnny-O Caz Shagfoot - $8.20
P: RyJ Short Churchill - $8.28
Being that there was no real set price on the Camacho, just an average from a few old prices found online, I think we're good with that one. The first and third are good to go as well, excellent job there Julius!
I would really prefer to stay away from puts being under, or even over, as much as possible, and if they are to not make it too far of a stretch. I know it may make it harder/more difficult to trade for something you're really wanting, and this being a 201 pass I'll keep it a little less strict as far as trades. Just be fair and keep in mind this is not only a chance to get something decent you may like, but to leave something decent for the next guy to try.