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Jonathan WardParticipant
2200/2210 call vertical expiring today.
Jonathan WardParticipantIgor,
I just noticed I was thinking about this month’s expiration not September. The call spread is ITM and expires today (tomorrow). So I’m just going to let them expire instead of selling them.
Does that sound like the right thing to do?
-Jon
Jonathan WardParticipantIgor,
I sold the put side long ago. Shouldn’t I just let the call side expire to maximize profit?-Jon
Jonathan WardParticipantIgor,
Are you looking to roll down the put options now?Jonathan WardParticipantThis one looks it might be hard to break even – or at least take a while. My delta and gamma are effectively zero while my theta is 17. Vega, on the other hand is -50. But since this still has 37 DTE, even if IV spikes (which doesn’t seem terribly likely), I guess there is time for it to revert — unless it happens late.
What are your thoughts, Igor? You’ve been doing this much longer than I have.
Thanks.
-JonJonathan WardParticipantSold Jul16 2010/2020 Put Vertical @ 1.05 Limit. Price was too low for the 2010/2000 spread.
Jonathan WardParticipantThat is helpful. Thank you.
Jonathan WardParticipantSo the SPREAD shows a delta of -27, but the 2175 call option itself has a different delta. Am I looking at the spread delta or the short option delta?
Jonathan WardParticipantMy call spread shows a delta of -27 (after closing the put spread for 0.35 as you advised). Would the hedge be to buy 1 2610 call option for around 7.90? Or what would you use? I know you mentioned going further OTM, but I’m not sure which strike you would use.
Thanks.
Jonathan WardParticipantIgor,
I’m seeing delta of about -20 on the high end. I’m looking at both the July(monthly – 40 DET) and the July week 4 (47 DTE) options to cut that high side delta in half. Which do you recommend?-Jon
Jonathan WardParticipantSteven,
I see that you scaled this calendar. I didn’t ever see a need to as I started with the 700 calendar spread. I only bought 3 contracts since I anticipated needing to scale at some point as the underlying price moved up or down — but it never moved outside my initial breakevens. My current high-side breakeven is 729 with an underlying price of 713 or so. So I’m up over $800 now (which feels great), but I’m wondering about “milking” this a bit further. If AMZN moves up another $15 (or maybe less), then I would consider buying 3 contracts of the 730 calendar.
What is your thought? I like the 18% profit in a couple of weeks, but it seems like there is a lot left.
-Jon
Jonathan WardParticipantWhat a rookie question, but I think I understand now. Thanks for the help, Roger.
Jonathan WardParticipantIgor,
Just to be sure, when you say 20-23 delta, does that equate to $0.20-$0.23 in value for the vertical/diagonal? I don’t use the service that you do that shows the deltas so clearly. (I’d like to, but I’m not willing to add another expense to my monthly outlays.
Thank you.
-Jon
Jonathan WardParticipantGot filled at 1.25 a minute ago. Good trade.
Jonathan WardParticipantSteve,
What about just selling some puts against this (say, June 70) for a high probability trade? The high end is capped, but the likelihood of making some decent money is there.
On the other hand, this ties up lots of capital to cover the downside risk (assuming I understand things correctly). What would you recommend to not tie up so much capital?
-Jon
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