Thursday, July 9, 2009

Re: [TheOptionClub.com] ?



Hi Carmelo, with more than 6 weeks to August expiration and a recent pump in volatility, sure there is some stuff you may consider...

First of all, close the call side as 580/590 call vertical is trading at 0.1/0.25. Then, consider rolling down the put spreads from 440/450 to let's say 390/400 - should be possible to do this at around 1.5 debit when the market opens today... Finally consider selling call spreads which are a bit closer to the money, let's say, 540/550 or 550/560. Depending on your own market outlook, you can choose the strikes you like - you can even have more contracts on one side than the other... But don't forget to look at the overall risk/reward scenario before going ahead with any adjustment...

Good luck!!!

Cheers Vikas


 


On Thu, Jul 9, 2009 at 3:59 AM, cguy444 <carmelo5791@aol.com> wrote:


A couple of things:

I'd appreciate some suggestions on fixing a trade.

RUT Aug 09 IC
440P/450P/580C/590C
1.95 credit

Also...I got killed today on an AMGN IC. One trade lost all profits (and created a net loss) since going live (a few months of work). Hmmm...should I not use equities for IC trades?

Thanks,

Carmelo


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