Calendar Spreads

I did get filled on SHLD..was looking at the Mar/Jun cal but decided to go ahead a get a buck for feb....so
BTO 5 115P cal Feb/June (+1.30 Feb -8.10Jun) debt 6.80
BTO 10 115/120P diag Feb/Jun ( +1.25 Feb -10.50 Jun) debt 9.25

The March prem should be good. hoping to cut the debts on both by 1/3rd vol was 35 and June 36

the plan is to roll both the 115's and 120 in Mar to 120 (doing a reverse diag on the 115's for just that month)

current position greeks (on total position)
delta -289
gamma -58
Theta +97
Vega +324

VP GL on yours! keep posted:)
 
Quote from DonnaV:

rolled (short part of cal) WFMI FEB to MAR 72.5 to 70 at a cost of .90
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geez...ok I'll admit it to the world I'm mathmatically challenged....cost was 4.00-3.30 which is .70...thats what happens when I don't use my fingers to count:D
 
No need to worry. Am too mathematically challenged and hence options trading is the perfect vehicle for my abilities :)

You rolled for .70 debit or credit? Had a scan but couldn't find original trade.

MoMoney.

PS.

Don't mind me interupting the "Donna and Volitilitypimp" show.

Quote from DonnaV:

geez...ok I'll admit it to the world I'm mathmatically challenged....cost was 4.00-3.30 which is .70...thats what happens when I don't use my fingers to count:D
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debt...but at least I rolled down....so now my Long put may 72.5 is good (assuming stocks trades lower:) )
Quote from momoneythansens:

No need to worry. Am too mathematically challenged and hence options trading is the perfect vehicle for my abilities :)

You rolled for .70 debit or credit? Had a scan but couldn't find original trade.

MoMoney.

PS.

Don't mind me interupting the "Donna and Volitilitypimp" show.
More...
 
Quote from momoneythansens:


PS.

Don't mind me interupting the "Donna and Volitilitypimp" show. [/B]
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Your imput is very valued :p I'm going to update all trades this weekend..have an issue with one of them so check it out!
 
lol. puhlease mo, u r one of the brightest cats on this website, feel free to critique and add anything on this thread.:)

I rolled my BMC software tri-calendar spread. I closed out the 25 call strikes altogether, resulting position a double calendar 20 put cal & 22.50 call cal. ratioed 7:5. The 25 calls just had stinky spreads, i had to cut them loose.
 
What I realized is that I really had not thought thru my exit strategy on these calendar spreads...oops! However in my defense by definition a simple vertical spread max risk/reward is defined from the beginning whereas in a cal spread only the risk is defined. I've done a bit reading and much thinking the past couple of days and of the options books I have only coach's "Option Trader Handbook" thas specific suggestions for the two spreads I have that are ITM...RMBS and WFMI.

The first which he has already mentioned is rolling to a Bear Put spread. However I think the underlying assumption (correct me if I'm wrong) is the back month is not as far away as my back months are (May) If they were April or Mar then I might have confidence to do it.

The second suggestion is rolling into a diagonal ratio spread..." If the underlying stock has moved below your put calendar strike price and you expect the stock to move sideways or slightly lower (higher) converting the put calendar spread into a diagonal ratio spread to take advantage of....and remove risk of assignment." This actually is a possibility for WFMI because it has come down significantly from when I first put on the spread and could very well stay in this range 65-70 for the next month...the risk of course in buying back the Mar 70 and selling the 65 ratioed is the naked puts...so I need to study the stock and figure out if I'm comfortable in owning it at 65. Basically I do like the stock, but had felt it was over extended so now that it has come down.....

Lastly I actually had an original idea. There is no rule saying you cannot adjust the BACK month. After Feb exp next week the April options should open on both stocks and I might be able to roll my May to April...possibly with enough credit to pay the original debt off (I only owe a buck something on RMBS) and have a risk free play........whadayathink?

and I agree GOOGLE SUCKS! on Friday I sold a 360 put:D :eek:

Mo I want you to start a B-fly thread!!! how you build them...
 
Quote from volatilitypimp:

lol. puhlease mo, u r one of the brightest cats on this website, feel free to critique and add anything on this thread.:)

I rolled my BMC software tri-calendar spread. I closed out the 25 call strikes altogether, resulting position a double calendar 20 put cal & 22.50 call cal. ratioed 7:5. The 25 calls just had stinky spreads, i had to cut them loose.
More...

did you take a hit or profit?
 
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