TTGT : To catch a falling knife?
Updated
I have taken off most bullish trades rather quickly recently. Today I bought 200 shares and wrote only 1 call in December for 2.10 at the 25 strike, leaving 1 lot uncovered. This is not how I normally reduce basis but maybe I am caving to FOMO as so many negative factors pile up against the markets yet they still march up every day on nothing but pixie dust and unicorn farts. The 2.5 wide strikes make it difficult to place put ratios on a smaller stock and I may add 2 more lots if we continue down but will most likely pull the horns in a little until we get closer to December and see if my initial feelings were correct or not.
Trade active
Took off the uncovered portion of the trade by selling 100 shares for 30 profit..I should stick to my mechanics and the fact that I was not caught when it was down 7.00 is an opportunity to lighten up here.Note
Another piece of work here and the position I hedged the least unfortunately. I sold a 25 call, 20 call, and the smaller gains from a put ratio and selling the stock (thank God I lightened up on this one) I now have a total C.B.R. of 4.83. I also have a March 17.5/15 put ratio that I put on for defense and I plan to take profit on the long 17.5 put and roll the 2 15 strike puts.....but as of now 19.24 is my basis and an additional 2 lots with no rolls puts me at 15.41 for 3 lots total basis. Getting pretty long delta as the market pulls back and could use some relief in this one. Anybody got any favors they can call in ?? LolNote
Took off the long 17.5 put today into the down move for 1.00 profit......still short 2 puts at 15 so will look to roll as we get closer to expiry.Note
Bought back the 2 puts I sold at the 15 strike for .45 today (sold for 1.27) for a small gain on a huge loser. For full disclosure I lost .60 on a separate trade where I bought a single put vertical in a different account to get me through the earnings announcement the other day. Glad to only have a 1 lot in this stock but am way underwater on this one at this point. With another 1.00 of basis reduction now leaves me with a basis of 17.24 at this point.......still a ways to go but feels like this trade has taken forever and a day and may just punch out of this one for a loss before this market takes a turn. Getting rid of the risk of the additional 2 lots helps a lot.
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