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I like the adjustment of the condor after earnings. You might get lucky and make enough on the condor to make the calender a scratch trade and take it all off before expiration. To me that scenario is actually considered a great trade.
Right - I need the stock price to not move too much higher for about a week. If it is around this level or a bit lower a week from today, I should be able to take all the positions off for a small profit which would be a nice salvage of a bad trade.
End of Trade: Closed the 41/40 Put Spread for $0.08. I wanted to let this expire worthless but with the market so volatile right now when SBUX broke below $42.20 decided I had to get out since downside risk if it goes to $40 or below tomorrow is $-1820. I will let the 46/47 call puts expire. So the final result of the calendar, condors, adjustments, etc... will be a gain of $160 - $99 (commissions) = $61. Not much reward for all the effort.
I would have closed it out as well and looked at it as a win. A small gain is better then a potentially large loss. Given the current environment it makes no sense to have 1-day exposure in either direction.
I agree - as far as management of the trade I think I did a good job of managing risk and placing myself in a good position to maximize my gain. In most market environments this trade would have done better, but when things move like they have recently the smart play is to just get out.
Update:
ReplyDeletehttp://screencast.com/t/lRB9FPpoR
I like the adjustment of the condor after earnings. You might get lucky and make enough on the condor to make the calender a scratch trade and take it all off before expiration. To me that scenario is actually considered a great trade.
ReplyDeleteRight - I need the stock price to not move too much higher for about a week. If it is around this level or a bit lower a week from today, I should be able to take all the positions off for a small profit which would be a nice salvage of a bad trade.
ReplyDeletehttp://screencast.com/t/7KhYYPkiLZ
ReplyDeletehttp://screencast.com/t/rnzizRrr
ReplyDeletehttp://screencast.com/t/NzaQ5hGj9TA
ReplyDeleteEnd of Trade: Closed the 41/40 Put Spread for $0.08. I wanted to let this expire worthless but with the market so volatile right now when SBUX broke below $42.20 decided I had to get out since downside risk if it goes to $40 or below tomorrow is $-1820. I will let the 46/47 call puts expire. So the final result of the calendar, condors, adjustments, etc... will be a gain of $160 - $99 (commissions) = $61. Not much reward for all the effort.
ReplyDeleteI would have closed it out as well and looked at it as a win. A small gain is better then a potentially large loss. Given the current environment it makes no sense to have 1-day exposure in either direction.
ReplyDeleteI agree - as far as management of the trade I think I did a good job of managing risk and placing myself in a good position to maximize my gain. In most market environments this trade would have done better, but when things move like they have recently the smart play is to just get out.
ReplyDelete