Update 5/18/10
Ho hum another 5 point day in GS. I knew as soon as I gave up on downside
leverage that Sam would come back to haunt me.
Oh well getting this thing to risk free strangle today...
Adjustments
-3 135c/+5 140c $4.35 net credit
-2 140p/+4 135p $0.72 net credit
Net position
-3 135c/+2 140c/+5 150c/+2 155c/+2 160c/+1 170c
-1 165p/-2 140p/+3 135p/+2 130p
Net overall credit is $45.25
Not much left to do since this just acts like a couple 130/150 strangles for
about $5 net credit. Unless GS collapses from here (or rockets). This
should be the end of the trade. No idea how many contracts traded (someone
might tally them but I'd guess 100-150 or so which means after all said and
done a very modest $200-$300 profit on a very wild ride.
-----Original Message-----
From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On
Behalf Of mcatolico
Sent: Monday, May 17, 2010 9:46 PM
To: OptionClub@yahoogroups.com
Subject: RE: [TheOptionClub.com] GS TRADE [was:How do you manage your Vega?]
Update 5/17/10
Back in the ballgame...
Well this whole trade could have been easily adjusted intraday to be
essentially risk free (could have bought in the 145/150 call vertical a
dozen times or so for less than $0.70 each) but we're using end of day here
for illustration and GS rallied with market into the close.
During expiration week, to me all bets are off, so to speak, with regard to
vega and the focus is on doing whatever is necessary to eliminate risk. with
that in mind, need to start reeling all the otm risk in a bit so...
Adjustments
+3 145p/-4 140p/-2 135p for a net debit of $4.40
( this trade simply closes out the put side backspread wing and extra units
that were sitting in inventory - sorry Sam, I've finally capitulated on a
big sell off in GS; the trade goes flat now somewhere below 135)
-3 140c/+13 145c/-6 150c for a net debit of $4.20
(this trade takes out most of the call side risk though there'd be a bit of
scrambling if this thing races toward 150)
net position:
-3 140c/+5 150c/+2 155c/+2 160c/+1 170c
-1 165p/-1 135p/+2 130p
Net overall credit is $40.18
-----Original Message-----
From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On
Behalf Of Karen
Sent: Monday, May 17, 2010 12:22 AM
To: OptionClub@yahoogroups.com
Subject: Re: [TheOptionClub.com] GS TRADE [was:How do you manage your Vega?]
update 5/14/10
sorry i've been out of town this weekend. with friday's close around 143 and
premium still pretty strong, i'm reluctant to buy in the shorts just yet. i
will add one small trade just to cover a little possible near term upside
risk:
+2 145c/-4 150c at $0.64 debit each (net debit $1.28)
net position:
-13 145c/+11 150c/+2 155c/+2 160c/+1 170c
-1 165p/-3 145p/+4 140p/+1 135p/+2 130p
Net overall credit is $48.78
--- In OptionClub@yahoogroups.com, "mcatolico" <mcatolico@...> wrote:
>
> No change for 5/13/10. Premium is coming in rapidly but there's no real
> reason to add to this position by selling it. and it's still a little too
> expensive to buy in (though the gambler in me might buy the -145p/+2 140p
> backspread a few times).
>
> -----Original Message-----
> From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On
> Behalf Of mcatolico
> Sent: Wednesday, May 12, 2010 11:42 PM
> To: OptionClub@yahoogroups.com
> Subject: RE: [TheOptionClub.com] GS TRADE [was:How do you manage your
Vega?]
>
> Ricky's correct on net position:
>
> Net position(corrected)
>
> -15 145c/+15 150c/+2 155c/+2 160c/+1 170c
>
> -1 165p/-3 145p/+4 140p/+1 135p/+2 130p
>
> Net overall credit is $50.06
>
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in TheOptionClub have varying backgrounds and degrees of experience in
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