RFH,
By my calculations you are profitable by $5,050 or 16%. Your choices are these:
1. close out the whole thing and book your profits.
2. Allow your position to be assigned and then sell covered calls.
3. Roll your shorts out a month or more and down a strike or more for a credit or a very small debit.
I recommend option 1, you can then start over with a new trade. By the way, you are profitable because you left 3 longs uncovered.
Rick
--- In ConservativeOptionStrategies@yahoogroups.com, "RobertH" <robhansen5252@...> wrote:
>
> I have a diagonal leap put spread going in XLE (current price 49.68). Here are the details:
>
> long 13 XLE Jan12 80 puts cost basis 24.35 (current price 31.65) delta -.95
>
> Short 5 Jul 55 puts cost basis 1.59 (current price 5.75) Delta -.91
>
> Short 5 Jul 56 puts cost basis 1.98 (current price 6.70) Delta -.94
>
> The delta of the entire position stands at -296.20. I'm at a loss as to what to do with this position. I'm sure the huge negative delta is due to the 3 more leaps I have than short puts. I've been reluctant to take off the shorts since my history dictates that as soon as I do, the underlying changes direction and starts shooting up.
>
> Any Suggestions?
>
> Thanks,
> RFH
>
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