X is moving up (although I still believe that in the next ER they will miss badly again) but decided to roll my calls higher.
In my previous trade (see below) I sold 18 strike puts to roll the calls up. Those puts were bought back for 0.05 debit today morning and there fore I can sell new puts and roll calls higher again:
The company reports earnings on July 25th and thus I opened this trade with puts expiring prior to that event. I will be then waiting after the ER for the next adjustment.
UPDATE: June 01, 2017
The trade executed this morning for 0.30 credit as expected.
ORIGINAL TRADE: June 01, 2017
For tomorrow morning I am placing a new X trade adjustment.
It looks like X found a bottom and I had to roll my strangles aggressively in the past to lower my busted puts from 36 strike down. Today I own 30, 27, & 25 put strikes in October and January expiration.
In order to roll the puts down I had to use ITM calls. When the stock was falling I sold ITM calls, the stock continued down, so the calls became OTM, and I could roll them again back ITM which helped me to roll the puts down.
Since it seems that the stock found a bottom, my calls no longer work in my favor. I have 17 and 18 call strikes and now there is a risk that if the stock starts going up my calls will hurt me.
So I decided to add capital to this trade and use new OTM puts to help me raise calls up. In fact, the trade I posted earlier (see here: https://www.facebook.com/groups/putdividends/permalink/1919234861678085/ ) was a trade which I used to adjust my calls already (I just didn’t report it here).
Tomorrow morning I will attempt to do the same again to raise my calls, so I am placing the following trade:
BTC 1 X Oct20 17.00 call
STO 1 X Jan19 18.00 call
STO 2 X Jul7 18.00 put
@ 0.30 credit limit day
X @ 20.85
trade IV: 52.90%
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