Discussion in 'Options' started by Trish, Aug 30, 2006.

  1. Trish


    Any constructive thoughts on this trade? Why did I wait and not exit? I am working on being patient AND quicker to react in just the right amounts/right time. I get confused with too may opinions....my quiet instincts serve well but that just went into the toilet with this trade.

    IBB Bear Call

    Entered Aug 9th @ $70.55
    Currently $ 73.89
    65 / 70 Sept calls
    #8 contracts
    cost basis: 7.40 & 3.10
    current cost basis: 9.10 & 4.30

    Techs topped, volume low, doji at 73 Resistance.
    Stock made higher low and higher high by a margin.
    Pullback to the moving average then a continued uptrend?

    What should I be thinking now
    1. Wait until pullback to the moving average to exit the trade at a better price
    2. Roll 65 call to 75 turning play into a Bull Call Debit Spread.
    3. Roll both out to October Bull Put (but this one I am really guessing about)
    Credit Spread
    70 BTO
    75 STO
  2. how did you got 4.30 (7.4-3.1) credit for 5 points spread ?