Good morning!
Wow, INTC went hard the other way, down 7% now. IBM crushed down 11% so we have to move on that:
| IBM Long Call | 2023 20-JAN 110.00 CALL [IBM @ $117.70 $-13.96] | 20 | 10/12/2020 | (728) | $50,000 | $25.00 | $-5.93 | $25.00 | $19.08 | $-8.89 | $-11,850 | -23.7% | $38,150 | ||
| IBM Short Call | 2023 20-JAN 125.00 CALL [IBM @ $117.70 $-13.96] | -20 | 10/12/2020 | (728) | $-38,000 | $19.00 | $-6.35 | $12.65 | $-7.45 | $12,700 | 33.4% | $-25,300 | |||
| IBM Short Put | 2023 20-JAN 100.00 PUT [IBM @ $117.70 $-13.96] | -10 | 10/12/2020 | (728) | $-11,750 | $11.75 | $2.00 | $13.75 | $3.85 | $-2,000 | -17.0% | $-13,750 |
In the LTP, let's sell 10 more IBM 2023 $100 puts for $14 ($14,000) and let's use that money to buy back 1/2 (10) of the $125 calls ($13,000) and we will certainly roll our 10 2023 $110 calls at $19 to the 2023 $100 calls at $24 for net $5 ($10,000). So for net $9,000 we've rolled $20,000 deeper into the money (keeping up with the drop) and widened our spread by $20,000 and removed 1/2 the covers and we still have an open slot to sell 10 (for example) April $120s, now $5 ($5,000), which were $13 yesterday and if we make just 2 sales like that we pay for the whole adjustment.
Not that IBM can't go lower but I'm worried it won't and we'll miss it.
| INTC Short Put | 2022 21-JAN 30.00 PUT [INTC @ $58.61 $-3.85] | -10 | 3/12/2020 | (364) | $-3,000 | $3.00 | $-2.33 | $7.00 | $0.67 | $0.07 | $2,330 | 77.7% | $-670 | ||
| INTC Short Put | 2022 21-JAN 50.00 PUT [INTC @ $58.61 $-3.85] | -20 | 7/24/2020 | (364) | $-17,000 | $8.50 | $-4.13 | $4.38 | $0.78 | $8,250 | 48.5% | $-8,750 | |||
| INTC Long Call | 2023 20-JAN 35.00 CALL [INTC @ $58.61 $-3.85] | 50 | 11/17/2020 | (728) | $67,000 | $13.40 | $11.85 | $25.25 | $-3.75 | $59,250 | 88.4% | $126,250 | |||
| INTC Short Call | 2023 20-JAN 50.00 CALL [INTC @ $58.61 $-3.85] | -50 | 11/17/2020 | (728) | $-31,250 | $6.25 | $7.95 | $14.20 | $-3.30 | $-39,750 | -127.2% | $-71,000 |
The problem here is we had such a good entry that this doesn't really affect us.
