backspread follow-up strategy

Discussion in 'Options' started by tman, Mar 11, 2006.

  1. tman


    Great board. I'm new.
    I have been delta-hedging a call backspread position with the underlying (btu in this case) @ 100 share incrememnts. My goal is to ride this into March expiration with a resulting profit.

    As the stock trades down the the lower strike, then gamma goes flat and could even go negative the the theta becomes positive. Any thoughts on the best adjustment at this point. (My p/l at this point is slightly positive). Thanks...........tman