EWZ Roll: I’m following along w/ @winstonthink ‘s ITM strangle leap w/ weekly straddle sales. I think you guys are calling these #diagonalbutterfly ‘s I’m rolling the weekly straddles at 50% profit.
Core Strangle Leap: Jan 2022 27 call/37 put @ $16.72. Max risk on a 1-lot is $672
Straddle 1 Aug 7 32’s sold at $1.40, covered at $.70 ($70)
Straddle 2 Aug 14 32’s sold at 1.60 covered at $.80 ($80)
Straddle 3 Aug 21 31.5’s sold at 1.50 today
Once $672 profit is realized on the straddles I will add a 2nd leap strangle. My objective is to get to a ratio sell situation where there is always more net long contracts than short, for a beneficial long vega position where all risk has been covered.
KODK….ugh rookie rookie here!
At about $35 I placed a ratio put spread/combo fly at 25/30 for 5.65 cr and a 15/10/7.5 put BWB fly for 1.25 debit. This gave me a breakeven of about 10.68. And a max loss of $5K on stock assignment with stock going to zero. Subsequently I closed the put debit component of the put ratio (30/25) for 4.85 taking 97% of available max profit.
I added a Sep 15/17.5 ATM (at the time) Call Credit spread for .88, and also added a DITM put Sep 20-strike. At this point it surely looks like a stock assignment is inevitable, so it’s about collecting as much as I can until then to lower the cost basis. These things can reverse on news, so trying to collect cash but not dig too big a hole on a reversal. This will be the classic Option Bistro game–that so many of you have mastered— to patiently and persistently work the basis. What a management team disaster on this. Queue the lawsuits!