Re: [TheOptionClub.com] GS TRADE [was:How do you manage your Vega?] [1 Attachment]

 

[Attachment(s) from Ricky Jimenez included below]

We are expecting an exciting home stretch where Michael has to make
crucial decisions on when to sell the long calls and puts into rising
theta and the goal of being risk free by expiration. I am happy that
I am just a voyeur.

To help follow the moves, in the attached file I use the 5/7 position
to construct an expiration P/L table, having the same information as a
graph. Since I regularly practice, I can do it in under 5 minutes. Of
course I wish somebody would write a program that would enable one to
do it in 30 seconds.


On Fri, 7 May 2010 22:32:04 -0500, "mcatolico"
<mcatolico@mindspring.com> wrote:

>Update 5/7/10
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>GS stabilized (temporarily?) so all I?ll look to do here is sort of rebalance the trade slightly as GS hovered around 143.
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>Adjustments
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>Add a call bwb +1 140/-2 145/+1 155 for 0.32 net credit
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>Sell the 145/140 put spread for 2.10 credit
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>The idea here is simply to kind of hover the trade around the 145 strike with what will look like mostly a butterfly with a bit of far otm gamma all in preparation of expiration week.
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>Net position:
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>-3 145c/-1 150c/+2 155c/+2 160c/+1 170c
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>-1 165p/-1 145p/+1 135p/+2 130p
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>Net overall credit is $33.92

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Attachment(s) from Ricky Jimenez

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PL_ table.rtf

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