Update 5/7/10
GS stabilized (temporarily?
Adjustments
Add a call bwb +1 140/-2 145/+1 155 for 0.32 net credit
Sell the 145/140 put spread for 2.10 credit
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.
Net position:
-3 145c/-1 150c/+2 155c/+2 160c/+1 170c
-1 165p/-1 145p/+1 135p/+2 130p
Net overall credit is $33.92
From: OptionClub@yahoogro
Sent: Thursday, May 06, 2010 9:54 PM
To: OptionClub@yahoogro
Subject: RE: [TheOptionClub.
5/6/10 update
Whew! I guess Sam picked the right time to study vega. Well your guess is as good as mine but the thing to do no matter what (usually) is to not get out of the game – no matter how the game changes.
Into the big sell off the thing to do is, well, sell off. And with vega rising I’d normally buy into it but since there is already a bit of vega in this trade – particularly to the downside –I’ll just shove things along. GS closed around 142 (as if that means very much).
Adjustment
-1 140c/-1 145c/+2 150c 5.80 net credit
+1 145p/-2 140p/+1 130p $0.10 net debit
Net position:
-1 140c/-1 145c/-1 150c/+1 155c/+2 160c/+1 170c
-1 165p/-1 140p/+1 135p/+2 130p
Net overall credit is $31.55
To unsubscribe from TheOptionClub, send an email to:
OptionClub-unsubscribe@yahoogroups.com
No comments:
Post a Comment