.. for a 2.76 credit.
Comments: (Late Post). Wasn't fully satisfied with the delta/theta metrics of this position on Friday, so added another short call in the August monthly, bringing total credits collected to 20.26. The resulting setup's delta/theta is now 4.40/34.15 with 15.13 of extrinsic (as of Friday close).
With earnings in 45 days, I'm basically going to attempt to reverse gamma scalp my way out of the position by using options to delta balance while the extrinsic bleeds out of the position. The basic goal here (as it is with gamma scalping) is to do adjustment trades at delta intervals to keep the setup fairly delta neutral to allow theta to do its "magic."
As a general matter, I don't like doing this type of thing a ton, since it can be buying power heavy, but don't have a ton going on in the margin at the moment, so am looking at it as a little engagement trade. (I also would like to just exit the position, since I've been thrashing around on it for several cycles already).
Comments: (Late Post). Wasn't fully satisfied with the delta/theta metrics of this position on Friday, so added another short call in the August monthly, bringing total credits collected to 20.26. The resulting setup's delta/theta is now 4.40/34.15 with 15.13 of extrinsic (as of Friday close).
With earnings in 45 days, I'm basically going to attempt to reverse gamma scalp my way out of the position by using options to delta balance while the extrinsic bleeds out of the position. The basic goal here (as it is with gamma scalping) is to do adjustment trades at delta intervals to keep the setup fairly delta neutral to allow theta to do its "magic."
As a general matter, I don't like doing this type of thing a ton, since it can be buying power heavy, but don't have a ton going on in the margin at the moment, so am looking at it as a little engagement trade. (I also would like to just exit the position, since I've been thrashing around on it for several cycles already).