$BIDU @ $103.80
Original trade:
Sold to open 1 BIDU May 29 108 short straddle @ $3.78
Bought to open 1 BIDU Jul 02 100 put / 115 call strangle @ $5.29
Net debit trade of $1.51
With BIDU moving down, need to roll the put side of the 108 short straddle
Rolled to the Jun 05, 105 short put for a debit of $0.92 – however, improving $3 in position.
Will let the May 29, 108 short call expire worthless and willing to take the risk by already opening the new short call leg to complete the $105 short straddle:
STO BIDU Jun 05, $105 call @ $2.20
The original Diagonal Butterfly was put on for a debit of $1.51, so the overall position now is in credit for $0.69.
Options Bistro 