I am going to open a new contingent order:
Allegheny Technologies
Long Puts
Contingency:
If the stock’s last price is greater or equal than 54.20 then:
BTO 1 ATI Apr21 2012 55 Put
Price: at market (expected price per contract would be $6.2)
Max risk: $620
Max gain: Unlimited (potential target: $11.70 or $1170 per contract)
Update:
01/06/2012 – trade canceled, it didn’t meet the entry price
I am also going to adjust the following position by rolling up the upper body of the butterfly:
Schlumberger
Put Butterfly
Unfortunately my broker doesn’t allow me to roll over with one order, so I have to close the upper body first and then open higher part later:
1st step:
BTC 2 SLB Jan21 2012 60 Put
STC 1 SLB Jan21 2012 65 Put
Price: limit credit $0.25
When filled, 2nd step will follow:
BTO 1 SLB Jan21 2012 70 Put
STC 2 SLB Jan21 2012 65 Put
Price: limit debit $0.93
This trade will be taken on both my accounts: TD trading account and ROTH IRA account.
Update:
01/04/2012 – I talked to my broker and they do not allow me to open an uneven butterfly, so I would need to treat it as spreads. For that I do not have enough money on my account and thus I cannot finish this conversion. Thus I am considering this trade as closed with a loss.
I sold the upper body for credit $0.23, with the original cost of $0.78 this trade is a loss 70%
Thank you for this post! I’m gonna come back later to see more ;) BTW. happy new year! :D