Short term
/
Buy
Trade view / 19 January 2017 at 15:13 GMT

UPDATE: Index calendar on Russell 2000 — #SaxoStrats

Product Manager, Options Trader, Educator
Denmark
Instrument: IWM:arcx
Price target: 137
Market price: 134.78
SaxoStrats
 
With expiration tomorrow, January 20, we are going to roll our short call (20 January 137 call) for a net credit of $0.38 (at the time of this publication). 

This will bring down our cost basis in the strategy to just $0.44 (initial debit of $0.82) per contract. 

To roll out of the position you can use the combination ticket, as shown below.

Roll # 1
Source: Saxo Bank 

— Edited by Michael McKenna

For more on contract options click here.

Non-independent investment research disclaimer applies. Read more A compiled overview of Trade Views provided on TradingFloor.com is found here
2y
Mekong Mekong
Hi Georgia, if we missed the roll forward, what would you advise, the Jan27 are @.25
2y
Mekong Mekong
Georgio, my apologies, predictive text.
2y
Georgio Stoev Georgio Stoev
n/p, yes price is at the low for the session. I have not got a fill either at $0.38. will wait till tomorrow.
2y
Mekong Mekong
I haven't closed the short leg, that should expiry, no need to pay commission to close it?
2y
Georgio Stoev Georgio Stoev
well that's not what we have in mind- we will roll for a credit
2y
Georgio Stoev Georgio Stoev
we want to hedge the long option
2y
Mekong Mekong
I have a GTC for a credit, on the 27 Jan, but I would like to remove the buy of the short , thereby saving something.
2y
Mekong Mekong
I doubt it will rally $3 tonight.
2y
Georgio Stoev Georgio Stoev
you'd create two short against one long....
2y
Mekong Mekong
For two nights.
2y
Georgio Stoev Georgio Stoev
that's correct
2y
Mekong Mekong
And that's assuming I get filled on the new 27 Jan short. I might end up just long the Feb calls.
2y
ChristianK ChristianK
Hi Geogio. The current mid price is 0,30. Are you rolling at this price?
2y
Georgio Stoev Georgio Stoev
yes - we are.
2y
ChristianK ChristianK
Done. Thx
2y
Georgio Stoev Georgio Stoev
Thank you Chris- have a good weekedn
2y
Kurdeul Kurdeul
Hi Georgio, the price now 0.22 and rolling still charges full commission! Is it worth rolling it for 0.15?
On another note, I got a margin call on the short 137 call which is expiring today; Why?
2y
Georgio Stoev Georgio Stoev
That is the strategy to roll out for another week and reduce cost basis down in the initial investment of $0.82.
2y
Kurdeul Kurdeul
Many Thanks Georgio - will do.

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