The big gap higher on the no-war Ukraine news has put us into negative theta territory… luckily we bought some gamma through the 1×2 and so we can adjust the trade a bit.
I want to do two things:
1. Close out the 1×2 for a profit
2. Roll one of the call spreads higher
The cost of the roll will be covered by the call spreads.
So first trade:
Buy to close +2 Mar 1200 Calls
Sell to close -4 Mar 1210 Calls
Net credit: 800 per spread
And the second trade:
Buy to close Mar 1150/1200 Call Spread for 38.50
Sell to open Mar 1200/1250 call spread for 17.00