Post adjustment Risk Graph uploaded to files section, James
--- In OptionClub@yahoogroups.com, "mcatolico" <mcatolico@...> wrote:
>
> 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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