Posting a revised visual depiction of this trade (see Post Below) showing the 80 short call strike that covers the stock, plus the December 20th 115 short call I sold against on the post-earnings pop to $90 or so, along with my cost basis.
With price breaking my short call here slightly, I may add short call to cut net delta in the position, particularly given the fact that background implied remains high (61.5%), earnings are in the rear view, and I don't have a ton of much else going on ... .
With price breaking my short call here slightly, I may add short call to cut net delta in the position, particularly given the fact that background implied remains high (61.5%), earnings are in the rear view, and I don't have a ton of much else going on ... .
Trade active:
Selling the January 105 short call here for a 1.88 credit on this little bounce. Cost basis of 71.45; delta/theta at 13.70/12.82.
Trade active:
Rolling the Dec 80 short call down to the 75 for a 2.35 credit. Cost basis of 69.10 with revised max profit of 5.90.
Trade active:
Covering the December 20th 115 short call for .15; cost basis of 69.25. Still have the Dec 20th 75 covered call on, along with an overwritten Jan 105 short call.
Trade active:
... And sold some Dec 20th 89 for 1.23; scratch at 68.02.
Trade closed manually:
It's looking weak here, and I don't want to roll into earnings, but rather play earnings "freshly" if I'm going to do that. Taking profit here: closing the whole show for 71.45; 3.43 ($343 profit).
