#BullPutSpreads #CoveredCalls – I got caught up in the reddit craze when it looked like they might go after silver next. First trade was ITM bull put spreads going very directional.
Feb 1st: Sold March 19th 30/25 BuPS @ 3.30
It didn’t take long to see that this was never going to work. To minimize losses I sold bear call spreads right over the top of the put spreads.
Feb 23: Sold March 19th 25/30 BeCS @ 1.10
The call sales eliminated any chance of the trade being a winner but cut max loss down to 60 cents. That’s where I was going to let it end until today. I knew all along there was a decent chance the short 30 puts could get exercised early so on to plan B when that happened today. 🙂 🙂
After the early assignment I closed the 25 strike leftover long puts for additional credit.
Mar 17: Sold to close Mar 19th 25 puts @ .95
This leaves the short 25 strike calls that were sold on Feb 23rd as a covered call position on the stock. I don’t believe the 25 strike short calls will get hit this week (we’ll see). I do have a tight stop on them since I sold next week’s calls already against the stock.
Mar 17th: Sold Mar 26th 23.5 calls @ .95
All said and done the position was assigned at 30 and I’ve collected 6.30 in premium. This leaves the stock at a basis of 23.70 covered at 23.50. If needed one more roll of the calls should get the overall position to even.
I’m not sure it helps anyone but it helped me to review it all!
EDIT: Update while typing this…stopped out of this week’s 25 strike calls @ .15 so stock basis now 23.85
Options Bistro 