Option Trading Articles: Re: [ConservativeOptionStrategies] Adjustment of current SPY diagonal leapspread position

Monday, April 12, 2010

Re: [ConservativeOptionStrategies] Adjustment of current SPY diagonal leapspread position

Joe,

Is there a reason that you are using SPY rather than SPX? It would seem that you are spending a lot on commissions.

I am in the process of reviewing your paper and I imagine I will have a few more questions. Thank you for your patience.

Jocelyn

--- On Mon, 4/12/10, joe & leigh <gass20@aol.com> wrote:

From: joe & leigh <gass20@aol.com>
Subject: [ConservativeOptionStrategies] Adjustment of current SPY diagonal leapspread position
To: ConservativeOptionStrategies@yahoogroups.com
Date: Monday, April 12, 2010, 5:27 PM

new position established 03/09/2010 spy, an etf and adjustment

initial leap position had a delta of 0.9 so i sold at ratio of 9:10 and sold short call atm
the short call had almost no time value today remaining so i btc the short call position, stc 1 long leap position to cover most of the cost ...then sold the april 120 atm short call.....ratio of 7:9 thereby maintaining upside protection.. ...drjoe

04/12/2010 Sell To Open 7 SPY Apr10 120 Call $0.77 $523.96
04/12/2010 Buy To Close 9 SPY Apr10 114 Call $6.05 ($5,460.05)
04/12/2010 Sell To Close 1 SPY Dec12 80 Call $41.94 $4,178.97
03/09/2010 Sell To Open 9 SPY Apr10 114 Call $2.18 $1,946.92
03/09/2010 Buy To Open 10 SPY Dec12 80 Call $36.30 ($36,315.11)