I have the same SPX DD, although mine is unbalanced (ratio 3calls/2puts) and I have a tent pole at 1315. I do not plan on adjusting/closing unless SPX hits 1355. I am also curious to see what Murray's plan is... Tim
Just got home from a big night out on the southern hemisphere. Well you got me very interested. What the strategy? CTMs? Debit diagonals? edit : adding a funny face in there
Rolled the Nov 1350c to a Nov 1375c, which places the upperside of the SPX Call Diagonal into a Call Calendar. The cost wiped out the profits for the month up to this point. A VEGA spike would still create a nice profit. Current upside has no risk. BE is unlimited, but at the cost of rolling up to 1375 Call Calendar. RUT Double Diagonal is really looking good. It's right where it was opened a few weeks back, but a little VEGA would be appreciated There was no panic to roll... as would be in a Credit Spread. Yes, I did take a loss, and I accept the loss as part of trading. What I found interesting was that just two days ago, the position was very profitable... even through the strong up trend, but the big up day move to 1350 was detrimental and was cause for the roll. In hind sight, with all the upside pressure.... taking the position off for a profit early this week would have been prudent... the trend is very strong. Still hoping for more downside.... M~
Murray, Did you roll the Nov 1375c to Dec? And the Oct 1350c to Nov 1375c? Otherwise I don't see how you got to a call calendar. Tim
It would take a while to track what I did but I basically morphed my 1375/1400 into bullish positions both in Oct and Nov. I am not gonna fight the trend or the magnitude. So I converted my diagonal into a call ratio spread and a call ratio backspread respectively for a small net debit. Let the good stocks roll!
Murray If you dont mind, can you please show your initial double diagonal position numbers, two days before numbers when it was showing profit and and after you took the loss. everyone will benefit by comparing the DD numbers. thanks
Sorry... typo Rolled the Oct 1350c to Oct 1375.... so the current call side is an Oct1375c/Nov1375c Call Calendar. In another account I did the identical roll, but bought back half of the Oct 1350c first for a loss, then rolled the rest up to 1375. Thanks for catching the mistake, M~ PS. Heather, I wish I would have taken a screen shot.... two days ago... that's a great idea... save a screen shot every day with the market data attached for reference.