Continuing to work the call side up on this setup one strike at a time ... .
With 7 DTE, and the put side of this setup nearing worthless, I thought I would close it out here for near max profit, which I did for a .04 ($4)/contract debit.
I then proceeded to roll the Aug 19th 121/126 short call vert out to the Sept 2nd expiration, which I did for a small debit (.08/$8 per contract), after which I proceeded to sell the Sept 23rd 119/122 short put vertical against it for a .26 ($26)/contract credit. Unfortunately, I fat fingered the expiration on the short put side (which should have also been Sept 2nd), but I'll probably just leave it there for now (although it's going to bug me a ton every time I look at it).
Important thing is: I'm net credit for the roll ... .
Naturally, the setup looks like a fierce hot tranny mess here, but I would point out that I'm not necessarily looking for price to finish below 122 by expiration (although I''d love that): I'm looking for price to break the short call side's break even, which is at 126.19. This will, in all likelihood, allow me to roll the short call side again for another credi, narrowing of the spread, and/or improvement of the short call strike, all good things ... .
With 7 DTE, and the put side of this setup nearing worthless, I thought I would close it out here for near max profit, which I did for a .04 ($4)/contract debit.
I then proceeded to roll the Aug 19th 121/126 short call vert out to the Sept 2nd expiration, which I did for a small debit (.08/$8 per contract), after which I proceeded to sell the Sept 23rd 119/122 short put vertical against it for a .26 ($26)/contract credit. Unfortunately, I fat fingered the expiration on the short put side (which should have also been Sept 2nd), but I'll probably just leave it there for now (although it's going to bug me a ton every time I look at it).
Important thing is: I'm net credit for the roll ... .
Naturally, the setup looks like a fierce hot tranny mess here, but I would point out that I'm not necessarily looking for price to finish below 122 by expiration (although I''d love that): I'm looking for price to break the short call side's break even, which is at 126.19. This will, in all likelihood, allow me to roll the short call side again for another credi, narrowing of the spread, and/or improvement of the short call strike, all good things ... .
Trade closed manually:
Closing this setup for a loss to free up buying power for something higher in volatility. Low vol is making it tough to roll for net credit here ... .
