... 81.22C/103.22P for a 1.25 credit.
Comments: Rolling this out a touch early due to lack of extrinsic in the short put, which ostensibly increases assignment risk. I improved the short put by a strike, but kept the inversion the same -- a 22 wide for which I've collected 19.50 (See Post Below) plus 1.25 or 20.75, with my resulting cost basis in any stock I might be assigned via the short put 103.22 - 20.75 or 82.47 relative to where it closed today at 75.87. I prefer working these inversions to a point where either I can scratch them out or where taking assignment would be at "something close" (a relative term) to where the stock is currently trading. That way I'm not starting out working a covered call way under water such that selling calls against at or above my cost basis wouldn't be productive.
Naturally, there's a point where you ask yourself whether you've mitigated enough loss such that you can comfortably take the hit, free up the buying power for something more productive and then move on.
Comments: Rolling this out a touch early due to lack of extrinsic in the short put, which ostensibly increases assignment risk. I improved the short put by a strike, but kept the inversion the same -- a 22 wide for which I've collected 19.50 (See Post Below) plus 1.25 or 20.75, with my resulting cost basis in any stock I might be assigned via the short put 103.22 - 20.75 or 82.47 relative to where it closed today at 75.87. I prefer working these inversions to a point where either I can scratch them out or where taking assignment would be at "something close" (a relative term) to where the stock is currently trading. That way I'm not starting out working a covered call way under water such that selling calls against at or above my cost basis wouldn't be productive.
Naturally, there's a point where you ask yourself whether you've mitigated enough loss such that you can comfortably take the hit, free up the buying power for something more productive and then move on.
