the market proceeded to drop 60-70 points right AFTER your short straddle call. that straddle took some heat, i am afraid
Standing bid to buy at SPX 1320. These guys in Washington must be drama queens - how else would you explain waiting to the last minute to announce and do the obvious?
I'm guessing it did, but not anywhere as much as it is up in profits now. On the contrary, nitro's theta bleeding long calls are unlikely profitable at this point.
Added Sep '11 130 SPY Call at SPX 1320. Using SPY because I don't want to add the full sized SPX option.
Will have standing bid to add more Sep '11 SPY options at 1300 SPX. I have been using the 130 strike to keep things simple, and will do so again. At this point, the downgrade is approximately but conservatively priced in (fifty handle loss in SPX is market-wide equivalent of ~$500 billion dollar of market-cap loss.) Any further selling is "selling begetting selling." The default is not priced in.
Added long Sep '11 130 SPY calls. That's it. This goes to 1290 and I am forced to not only gave up a huge gain, but it is now a bigger loss than originally.
in march nLtro did not say it was Sep straddle. i bet he actually meant Apr 2011 expr. that straddle did work out eventually OK but after taking a lot of heat. just keeping the facts straight. nLtro could correct me if i missed the expiration of that straddle