Hedging Adjustments:
In the STP we have:
- 60 short SQQQ June $30s at $2, now $1.50
- 100 SQQQ March $21 calls at $3.20, now $2.55
Not too much damage on these since our 11/14 adjustment and now we can spend 0.95 to roll our 100 March $21 calls to 100 June $21 calls at $3.50 and that will cost us $9,500 and we can pay for that by selling 40 of the June $28 calls for $2.10 ($8,400). We're capping the return on the spread to $82,000 but, since the market never goes down, I want to spend as little as possible on the hedges.
We also have:
- 200 TZA April $11 calls at $2.65, now $1.90
- 100 short TZA April $16 calls at $1.10, now 0.66
- 40 short TZA Jan $20 puts at $4.05, now $8
TZA is way down at $12 now and we can cash our April $11s and roll them to 200 July $10 ($2.80)/18 ($1) bull call spreads at $1.80 so a small credit and we'll put a stop on 50% of the short April $16s at 0.80 and the rest at $1. The net of the spread was $25,800 and we're putting $1,000 back in pocket on the roll (it's not an emergency, get a good price!) And we can set stops on 50 of the short April $16s at 0.80 ($4,000) and $1 ($5,000) so the most we'd put in extra is $9,000 but we're getting 3 more months of time and $1 better in strike ($20,000 into the money) and we've widened the spread from $5 to $8 ($60,000 more but it would have to be a hell of a crash!). And, of course, we'd only be putting the extra $9,000 in if things started going our way for a change.
In the OOP, we have:
60 SQQQ June $20 ($4)/$28 ($2.10) bull call spreads at $1.90 ($11,400), now $3.80/1.90 so even and SQQQ is at $22, so this one is fine for now.
