I don't know what fuzzy math I used to come up with a profit on the trade. My TOS statement showed a loss of $950 so I've gone back to re-eval the trade: 1/5 +10 WFMI May 72.5 P -4.5 -10 WMFI Feb 72.5 P +2.05.......net -$2450 2/9 -10 WFMI Mar 70 P +3.3 +10 WFMI Feb72.5 -4.00........net -$700 2/21 +10Mar 70 P -7.20.....net -7200 - 20 Mar 65P +2.7..... net +5400 +10 Mar65P -3.5......net -3500 -10 May72.5P +10.0 +10 Apr 70.p -7.4.......net +2600 3/10 closed Feb/Apr 10 P.................net + 4900 cost of comm $125 Net LOSS...................$1075 a far cry from the profit I reported I'll have to go thru the posts to see where I made my error but looking at the trade ( which I really mangled since the stock did tank I should have MADE money) I see now that rolling the May 72.5 put to April 70 was NOT a good choice. Also as I said before selling the 20 march 65's were a good decision but I chickened out and bought back 10 of them for a loss of $800
I think Mad Dog 20/20 will help you in your predicament. Eventually, things will be a blur and won't matter. You'll start to feel invincible
not sure what mad dog is...but in going thru my post realized that they were not well constructed too much rambling inbetween the numbers. in the future will be much more discrete and concise with the numbers as in the above posting then if I want to rant do in in a new paragraph...may be mad dog WOULD help to figure out my errors one more edit...so that I said on Mar closed the Apr/may 10 put of course meant the 70 put...10 contracts
IV...I still do like them a lot. The three that I have been Journaling..RMBS, WFMI, and SHDL have so far been one win, one loss (because of poor management) and one still to be determined. i've opened several others that I have not shared and they seem to be doing ok...won't know for several months. What I like about calendars in addition to the fact they require no margin is there does not seem to be that much risk in the type of market we have been experiencing the last few years...fairly low vol..sometimes slightly increasing. Bottem line is that I expect that on stocks that are kinda high priced like IBM, BG, CL PG and others...this might be a very viable strategy. (I don't mean High in the sense that they are over priced but high in the $$ to buy the stock...cheaper to play the stock but as an IC or cal)