Stock ~ 60.20Here is another trade where I experienced delta inversion. Notice how the stock gapped down (in my direction) on 1/10.
I bought back the Jan 70 puts for $10.00 and sold the Feb 60 puts for $6.40 giving me a total debit of $3.60. Still not a bad deal-I get to control $10.00 extra of the stock (difference between the Jan 70 & Feb 60) only for $3.60!
Total cost= $365.90 w/ commissions
Adj. Cost Basis= 27.65 (from Jan) - $3.60= $31.25
New Stop Loss set to $25.00= $3,684.10 stop credit
Had I done this trade on 1/11 instead, I would have only paid $3.20. Next time, I need to roll quicker.
