adjustment for a calender spread

[Doubter]

Chisel has it exactly right and that is why I asked the question.
You already have a nice little profit so close out. You put out .45 and can now clear .35. Not a bad percent return for however long you held it. Next time you might want to consider putting more months between the two legs. Check the difference in IV but the longer time frame might give you more plays and the farther out leg will time decay a little slower.

 

[straddler]

Buying April and Selling March is long vega, no matter how u slice it. If you really wanted to sell vol, something like a apr/jan is the better play imho.

 

[Trajan]

Quote from chisel:



You own the April 30s for .45 and they're .80 bid.

Why do you need to "salvage" a winner?

Um, yeah. Besides having the stock get pinned at 30 for the March expiration, what else could you want. IVs typically come in as stocks rise. An option further out will hold its IV better as they tend to stay closer to the historical volatility mean.

 

[patefern]

Salvage might be the wrong term. The fact that you now own the April 30 call for .45 makes it beneficial to do something else with the call at March expiration. I thought someone would suggest doing a reversal or adding a bear put spread rather than just selling the call outright. Thanks all for the feedback.