#SyntheticStock – This is the last of my old positions that’s been stuck in limbo. It’s synthetic stock out to 2020 but weekly short calls have been buried DITM for weeks with no relief in site. The position needed a yuuuge move one way or the other and it hasn’t happened. It still could but I’m wasting time waiting. Doing an extreme repair trade here but also improving my cash position and allowing the weeklies to be sold again.

Closed the 400/400/390 synthetic taking an 11.15 loss

Closed the ITM short calls and rolled them….

Rolled them to a Jan 2021 ITM bull put spread for 4.85 debit.

So what now?

I can resume safely selling weekly calls against the position. The BuPS uses zero cash and just a small amount of margin but I’m also giving up any chance of huge profits (or losses!). Strictly a repair trade so as I sell weeklies and book them I plan on using that cash to gradually roll the wings of the BuPS in. At some point I hope to have it pretty narrow and be able to get out at a scratch.

Of course I still would like to see the stock go up but a drop isn’t the end of the world since it’s all defined risk.

I’ll calculate the final numbers tonight to see exactly where I stand but that’s the basic plan.


Sold REGN OCT 19 2018 415.0 Calls @ 1.65

With 5 wide strikes on the bottom end of the BuPS I should be able to move those up one strike with each successful weekly sale.