So I have left over put verticals 25/20 left over from legging and then hedging short puts in IQ all the way out to January. I decided to just go with a buy/write at the current price (just under 30) So I bought 200 shares and wrote 30 calls for 4.00 each......for a cost basis of 26 and downside protection at 25, which I will most likely take profit on the long 25puts and leave the 20s to either average down at or expire worthless in January. This will only give me a 13% return and is for a bit longer than most options traders prefer but works for me. I need the stock to stay flat or go up for 134 days. We shall see how things play out.
Comment:
Really long time since I have updated any ideas.....not that anybody would notice but for my own record keeping this is what has gone down (no pun intended) I have legged this trade as best as I could and have taken profits from the original put ratio that started the trade and the 25s I had for protection. Total C.B.R. is 11.49 but that is unfortunately on the original 2 lot (which means really only 5.47 reduction per lot) I now have 2 short calls @ 20 strike as well as the 20 strike short puts stated above......if all expires in Jan I have 200 with a cost basis of $23.64 and 200 with possible cost basis of $15.96 for a total basis on all 400 of 19.80, so if this continues to fall out of bed with the rest of the Chinese stocks lately, I will have more pain in my future with this position. I will be happy to close for a scratch at this point and could use a X-mas rally to bail me out :)