When or more importantly for what price did you buy this (diagonal calendar)?
What was your thought process in doing this trade BEFORE you put your hard earned money into it.
There is no risk of assignment - too much time value on the 270 calls and there are no dividends for AAPL.
Murthy
On Fri, Apr 23, 2010 at 6:17 AM, vimalbpatel@ymail.com <vimalbpatel@ymail.com > wrote:
Hey guys,
Very new to options so here is the problem.
I bought AAPL July $260 call couple of weeks ago and sold $270 May against it. Now price is approaching $270.
What would you do right now as AAPL is $269 premarket right now. Would you wait two more weeks before you buy back or roll over strike? Or you would buy back right now?
Did you get assigned three+ weeks before expiration? Because eventhough price is at strike, option is still made of extrinsic value and has yet to get any intrinsic value.
Thanks in advance,
Vimal
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