On 3/13, I opened this put diagonal:
I Sold Apr 85 put for $3.00
Bought Jun 105 put for $19.55 for a net debit of $ 16.55.
My cost basis was 16.55.
On 3/20, I adjusted my short position by rolling my Apr 85 to 90 put for a credit of $0.82.
Then I rolled up my short leg again from the Apr 90 to 95 put for another credit of $1.17.
Then I rolled down my long leg from the Jun 105 to 95 put to make this a calendar instead of a diagonal for a credit of $5.10.
Adj. cost basis was 16.55-0.82-1.17-5.10= $9.46.
On 3/31, I adjusted my position to lower my cost basis by rolling the April to May:
SOLD MAY 08/APR 08 95 PUT @ $3.37 credit
9.46-3.37= $6.09 adjusted cost basis
Today I closed out of the trade completely:
SOLD JUN 08/MAY 08 95 PUT @ $3.40 credit
6.09-3.40= $2.69 debit (loss)
2.69/6.09= 44.2% loss
This was a nasty trade for sure!
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