Hi. I've been experimenting with collars using LEAPs instead of underlying stock, in this case the JAN 2010 50 Calls.
I've gotten caught in a narrow chance of success with PPG lately:
| OPTIONS QTY DAYS PRice Change Delta Gamma Theta Vega:
| 100 AUG 09 40 PUT | +10 | 61 | 1.75 | 0 | -328.29 | 48.95 | -23.04 | 63.47 | $120.00 | |||
| 100 NOV 09 50 CALL | -10 | 152 | 1.25 | 0 | -246.81 | -33.39 | 8.41 | -86.70 | $450.00 | ||||
|
100 JAN 10 50 CALL |
+10 |
208 |
1.675 |
0 |
278.95 |
30.70 |
-7.34 |
107.38 |
( $1,725.00) |
so right now, either PPG drops to 38 before Aug expiry or increases to 54ish before January expiry...possible, but not my preference to wait it out... any suggestions how to adjust position to increase my chances of success?
Thanks.
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