This topic contains 6 replies, has 1 voice, and was last updated by 
-
Posts
-
On 5/12 I sold (2) MSFT 20MAY 250 puts for 5.00 credit each.
I collected $1000 total and will be willing to take stock at 250/share.
Here’s what this position looks like now:
MSFT at 253.49
I’m going to roll the short 250 put in 20MAY expiry down to 245 strike and out to 27MAY expiry. I have missed the dividend payment on 18MAY, so I might as well roll down and out for additional credit.
Order Ticket:
Credit collected: 6.57
MSFT at 271.50
I’m going to roll the short 245 put out to 10JUN expiry and up to 255 strike for a credit of 1.58
Order Ticket:
Credit collected: 8.15
I’m long 200 shares at a cost of246.85
I’m going to sell a strangle (short put and short call, both OTM around delta 30)
This means that if stock goes higher, I get called away. If stock goes lower, I will be put more shares at a lower price.
Win/Win right?
We’ll see.
Risk Profile:
Order Ticket:
MSFT at 254.29
I’m going to BTC the 245/270 strangle and STO 29JUL 235/270 strangle for a net credit of 4.65
Risk Profile:
Order Ticket:
MSFT at 263.87
I’m going to BUY TO CLOSE the 29JUL 235/270 Strangle and SELL TO OPEN 19AUG 245/275 Strangle for a credit around 3.70
Risk Profile:
Order Ticket:
I’m either getting called away at 275 or put additional shares at 245
MSFT at 281.61
I’m going to pick up 2 OTM puts to flatten this position out.
If MSFT is above 275 by end of next week (19AUG) the long stock position will get called away.
If MSFT is below 245 in the same timeframe, I’ll have to take assignment of an additional shares and will look to sell calls against the new position.
Here’s what Risk Profile looks like with the 2 long puts at 270 strike:
Risk Profile:
Order Ticket:
You must be logged in to reply to this topic.