WBA/Pirate, Pat - They actually sold more prescriptions - just not making money on them. I think the rules changed and they see that so they are going to adjust but I'm not walking away from $6/share when I can buy it below $60. Just another silly market sale for the long-term investor.
In the OOP we're good because we were sensibly conservative in our spread:
| Short Put | 2021 15-JAN 55.00 PUT [WBA @ $55.33 $-8.17] | -10 | 12/26/2018 | (654) | $-5,150 | $5.15 | $3.03 | $-2.85 | $8.18 | - | $-3,025 | -58.7% | $-8,175 | ||
| Long Call | 2021 15-JAN 50.00 CALL [WBA @ $55.33 $-8.17] | 20 | 3/8/2019 | (654) | $29,500 | $14.75 | $-4.13 | $10.63 | - | $-8,250 | -28.0% | $21,250 | |||
| Short Call | 2021 15-JAN 62.50 CALL [WBA @ $55.33 $-8.17] | -10 | 3/8/2019 | (654) | $-8,500 | $8.50 | $-3.30 | $5.20 | $-5.50 | $3,300 | 38.8% | $-5,200 |
I'd like to roll the calls lower if we can but that's about it for that one.
In the LTP, however, we took a bullish chance with them and got killed:
| Long Call | 2021 15-JAN 70.00 CALL [WBA @ $55.33 $-8.17] | 40 | 10/22/2018 | (654) | $59,400 | $14.85 | $-11.60 | $5.63 | $3.25 | $-3.25 | $-46,400 | -78.1% | $13,000 | ||
| Short Put | 2021 15-JAN 65.00 PUT [WBA @ $55.33 $-8.17] | -10 | 3/25/2019 | (654) | $-11,000 | $11.00 | $3.10 | $14.10 | $4.15 | $-3,100 | -28.2% | $-14,100 |
I'm not worried about the short put target but the long $70s are hopeless so, in the LTP, let's roll our 40 WBA 2021 $70 calls at $3.50 ($14,000) to 80 of the 2021 $50 calls at $10.90 ($87,200) and we'll sell 40 of the 2021 $65s for $4.75 ($19,000) so we're essentially doubling down by adding net $54,200 to our $48,400 trade though it's not really that bad as we've already pocketed $40,000 in gains on WBA so this is just a set-back and now we have $120,000+ worth of longs (only 1/2 covered) with a chance to produce a nice income if/when they bounce back.
