Trade view /
06 October 2016 at 8:37 GMT
Sell 12 OCT 217 Call against our long 26 OCT 217 Call for $0.63 (last night's close).
The second adjustment and the credit of $0.63 reduces our cost basis down to just $0.17 (original cost basis at $1.30).
In just two rolls we have managed to almost pay off entirely the net investment of $1.30. If we decided to close today, there would be a net gain of $1 (as of last night 26 OCT 217 calls are at $1.17).
Markets will most likely continue to grind up and down which is what we want with this neutral strategy. Will provide another update Tuesday, October 11.
— Edited by Clemens Bomsdorf
Non-independent investment research disclaimer applies. Read more