ADJUST: AMED Long Call

For the last couple of days, AMED has been neutral (consolidation) and hitting a resistance near 52.50.

I analyzed the trade in TOS and noticed that my greeks on this trade had gotten worse as the trade was now going against me. I am not ready to exit this trade yet until it breaks down through support at 50, so I have sold Jun 55 calls to lower my delta, theta and vega risk.

I got a credit of $0.80 so that lowers my cost basis to 4.35-0.80= $3.55.

Here's how it changed my greeks:
With just the long calls I had (9 contracts), I had:
Delta= 510.27
Theta= -27.35
Vega= 57.69

Once I added the short leg I had:
Delta= 285.85
Theta= -5.32
Vega= 11.14

So I almost lowered my delta risk by half and lowered my theta risk by 5 times! Remember, if you are long, you have time and volatility working against you!

As long as AMED stays above 50, I will remain in the trade and if it starts uptrending again above 52.50 then I will remove my short leg and keep the long call.