fuzzballl 7:25 am on Thursday, May 31, 2018
Tags: LEAPS ( 418 ), LongCalls ( 495 )

LABU

#LongCalls #LEAPS – Nice pop again today and now reaching negative deltas for the second time already even after yesterday’s roll. That’s my signal to book and wait for a pullback.

Sold to Close LABU JAN 17 2020 84.87 Call
Bought to Close LABU JUN 8 2018 92.5 Call

Quick little 10 day trade booking 3.42 per contract. Wish all experiments went like this! Only one contract but I’d say LABU is definitely staying in the watchlist.

jsd501 7:35 am on Thursday, May 31, 2018

What do you mean by a negative delta?
- fuzzballl 7:43 am on Thursday, May 31, 2018
  
  The combined overall deltas of the LEAPS and the weekly sales. Gives you a rough idea of the change in dollar value of the position with movement in the stock.
  
  When I initially set a trade it will have positive deltas. If the stock starts a move up then the deltas will gradually decrease towards zero. If it’s a new trade I’ll then roll up and out to regain the positive deltas. If the stock continues up even further the deltas can get down to zero a second time. At that point I’ll book it if it’s a fairly new position.
  
  The chart shows the same thing. The pink line is today and the blue line is expiration of the weeklies. Across the bottom is the price of the stock. Today my profit was maxed out around 98.0 so that’s where I closed it.
- fuzzballl 7:58 am on Thursday, May 31, 2018
  
  BTW…the vetical scale on the left isn’t really a player in this. It only takes into account the current positions. It has no way of knowing the values of any previous rolls or adjustments. That has to all be tracked separately. The important thing here is the shapes of the lines and where they start curving downward.